In an attempt to shave off $2 billion a year in costs Pfizer Inc. (PFE) will be cutting 10,000 jobs and closing down five plants. They hope to slash the costs by the end of next year.
Issues that have been facing many pharmaceutical companies include patent expirations, demand for lower prices, and lawsuits.
Pfizer, the world's largest drug maker, actually saw their stock price fall when typically job cuts of this magnitude would have boosted them.
According to this MSNBC.com article Pfizer has announced a major cost-reduction plan twice in the last two years to combat a loss of about $14 billion in revenue. The maker of Viagra and Lipitor faces the risk of losing 41 percent of its sales to generic competition.
The plants effected by closures will be three research sites in Michigan and two manufacturing plants in New York and Nebraska. It is considering selling another manufacturing site in Germany and closing research sites in Japan and France.
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