Abbott to cut 1,000 jobs at US medical testing sites in bid to save $150M

US drug major Abbott Laboratories is to cut 1,000 jobs, about 1.5% of its workforce, as part of a multi-year effort to lower spending on its medical testing business.

Abbott plans to transfer a large portion of its manufacturing operations to Europe. The firm says the lay-offs will save $150.0 million, but that redundancy costs in the short-term will be around $370.0 million before taxes, $150.0 million in the second half of 2008 and $140.0 million in the quarter ending September 30.

Total non-cash charges will be around $115.0 million, according to a document filed with the Securities and Exchange Commission. The remainder of the charges will be realized through 2011 as a result of product re-registration and transition timelines required under manufacturing regulations in a number of countries.