ANN ARBOR, Mich. -- Pfizer Chairman and Chief Executive Officer Jeffery B. Kindler announced plans to make major cuts to improve the company's future.

Pfizer Inc. said Monday that it will close its human health research and development facilities in Ann Arbor and Kalamazoo, affecting about 2,400 jobs.

The Ann Arbor facility has about 2,100 employees. Also affected are approximately 250 workers in downtown Kalamazoo and another 60 in western Wayne County's Plymouth Township.

But the world's largest drugmaker said it will continue to maintain manufacturing and animal-health research operations in the Kalamazoo area, preserving about 3,800 jobs.

Pfizer announced in March 2005 that it was closing a Holland manufacturing plant with 328 employees. About 60 people continue to work at the facility as it is being decommissioned, said Rick Chambers, a Pfizer spokesman in Michigan.

New York-based Pfizer also said in a news release that it will close manufacturing plants in New York and Nebraska as part of a plan to cut costs by up to $2 billion per year. About 10,000 jobs will be lost.

The latest cuts come on the heels of Pfizer's announcement two months ago that it was laying off about 20 percent of its U.S. sales representatives, around 2,200 people. Those cuts are included in the layoffs announced Monday.

The restructuring is part of an effort by Pfizer to cut costs by up to $2 billion a year amid fierce competition from generic drugs.

Michigan Gov. Jennifer Granholm planned an afternoon news conference in Ann Arbor to discuss Pfizer's announcement.

In July 2005, the company announced a three-year global-restructuring plan aimed at cutting costs and increasing efficiency. At the time, Pfizer had about 8,500 employees in Michigan, including around 5,000 in the Kalamazoo area and 2,500 in Ann Arbor.

Many of the job cuts came through normal attrition, retirement, hiring freezes and unfilled vacancies. Other positions were moved within the state and into and out of Michigan.

Kalamazoo was the longtime home of drugmaker Upjohn Co. before it merged in 2000 with Pharmacia Corp. After Pfizer acquired Pharmacia in 2003, about 1,100 jobs were cut or moved out of the Kalamazoo area.

Pfizer's leadership team discussed the challenges and opportunities facing the company and summarized Pfizer's most immediate priorities.

The Wall Street Journal obtained information from Pfizer stating the following:

Priority One: Maximize revenus in both the short and long term. This will include maximizing revenues from its current in-line portfolio and new products. In 2007, the company will further highlight Lipitor's benefits, build on Celebrex's success, and continue Lyrica's momentum.

Priority Two: Establish a smaller and more flexible cost base.

This will include the elimination of 10,000 positions or about 10 percent of Pfizer's total worldwide workforce by the end of next year. Pfizer will continue to consolidate its worldwide manufacturing operations with the closer of two additional manufacturing sites, Brooklun, NY and Omaha, NE. In addition, the company will pursue the sale of a third site in Feucht, Germany, subject to consulation with works councils and local labor law.

In Research and Development, the company is planning to close three research sites in the United States; Ann Arbor, Esperion and Kalamazoo. The company is also proposing to close research sites in Nagoya, Japan and Amboise, France.

Priority Three: Create smaller, more focused and entrepreneurial business units that will enhance innovation and draw on the advnatages of scare and resources.

Pfizer Inc also announced Monday that revenues for 2006 increased 2 percent, reported diluted EPS grew 144 percent, and adjusted diluted EPS(1) grew 6 percent versus 2005. Revenues in the fourth quarter of 2006 were substantially unchanged, reported diluted EPS grew 257 percent, and adjusted diluted EPS(1) decreased 12 percent versus the comparable quarter in 2005.

To see the full performance report on Pfizer, click here.

Ann Arbor Reactions To Pfizer's Job Cuts 1/22/07
Pfizer Announces Its Closing 3 Mich. Facilities 1/22/07