Becalmed Pfizer reviewing company operations, plans job cuts

Pfizer, faced with slowing earnings growth, and safety concerns that have hurt demand for its arthritis products, is conducting a comprehensive review of its operations and is considering job cuts.

"We have initiated a comprehensive review of our entire business and will provide a detailed strategic plan, including financial forecasts for 2005, at our meeting with industry analysts in April," said company spokesman Paul Fitzhenry.

Pfizer said the review would involve its pharmaceutical, animal health and consumer product units. The number of job cuts under consideration had not yet been decided.

The New York-based company has boasted industry-leading profit growth in recent years, fueled by booming demand for its prescription drugs and cost savings from mergers with rival drug makers Warner-Lambert and Pharmacia.

But due to competition from cheaper generic versions of some of its biggest medicines and the problems facing its Celebrex and Bextra arthritis medicines, Wall Street expects Pfizer's earnings to grow only about 2 per cent this year. That compares with 22 per cent growth in 2004, when Pfizer was just beginning to feel the heat from generics.