Hospira launches cost-cutting plan

Hospira, a USA-based specialty pharmaceutical company, has launched Project Fuel, a multi-phased cost-cutting initiative to improve the  company's margins.

Over the next 24 months, the firm expects to reduce its workforce by 10%  and deliver annual savings of $110.0 million to $140.0 million. To  achieve this, Hospira will now focus on its Specialty Injectable  Pharmaceuticals and Medication Management Systems product lines, while  rationalizing non-strategic assets. The firm  estimates it will incur  total charges of $140.0 million to $160.0 million, $90.0 million to  $100.0 million of which will be written down during this year.

The areas facing cost reductions include global procurement, finance and  information technology, with the majority occurring in the next 12  months. The firm says it will be de-layering its management structure,  consolidating certain functions and heightening the focus on process  improvement to reduce complexity and redundancy, accelerate decision  making and raise overall productivity.