Bristol-Myers Plans Cutbacks at New Unit
Bristol-Myers Squibb Co. will cut about 40% of the work force at the drug business it recently purchased from DuPont Co., the first step in a plan to reduce the unit’s costs by as much as $600 million.
Bristol-Myers will cut almost 2,000 of the unit’s 5,000 positions in the next two weeks.
Bristol-Myers completed its $7.8-billion cash purchase of the unit on Oct. 2, adding AIDS and heart medicines to help replenish Bristol-Myers’ product line amid increased competition from generics. The acquisition is the biggest for the drug maker since Bristol-Myers merged with Squibb in 1989, Bristol-Myers said.
Sales of the DuPont business, which makes the AIDS treatment Sustiva and the clot-buster Coumadin, were about $1.5 billion last year.
Bristol-Myers shares fell $1.24 to $53.66 on the NYSE. The stock has fallen 24% this year.
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