Hospira to Slash 1,450 Jobs

Officials at medical device maker Hospira Inc. have announced the company will cut 10 percent of its work force, or 1,450 jobs, over the next 12 months to improve the firm’s profits and fuel its growth.

In an initative called Project Fuel, the Lake Forest, Ill.-based company, which currently employs 14,500 people, will review its assets and streamline its management team and organizational structure. The initiative is expected to save $110 million to $140 million annually beginning in 2011.

“By reducing costs and improving efficiencies, we can free up more dollars to invest for profitable growth and shareholder returns. And with a streamlined, focused organization, we will reduce complexity, improve performance and be better positioned to advance our significant opportunities,” said Christopher B. Begley, chairman and CEO of Hospira.

In the fourth quarter of 2008, Hospira posted a 37 percent rise in net income but a 3.4 percent drop in sales.