LAKE FOREST, Ill. (AP) -- Hospira, which makes drug delivery systems and devices, said Tuesday it will eliminate 10 percent of its work force as part of a cost-cutting restructuring plan.
The reduction of about 1,450 jobs over the next 24 months, plus other cost-cutting efforts, is expected to save the Lake Forest, Ill.-based company between $110 million and $140 million annually starting in 2011.
The majority of the job cuts will take place over the next 12 months, Hospira Inc. said.
"We understand the impact these decisions have on our employees and their families, especially during tough economic times," said Chairman and Chief Executive Christopher B. Begley, in a statement. "Our actions, while difficult, are designed to benefit all of our stakeholders by ensuring a strong foundation for our future."
The company is also reviewing its management structure for potential changes, along with some assets.
Hospira expects pretax charges between $140 million and $160 million, of which about $90 million to $100 million will be incurred in 2009.