Posted on 01/26/2011 10:56:36 AM PST by coaltrain
Abbott Laboratories said it is axing 1,900 workers, including about 1,000 of its more than 13,000 people in Northern Illinois as part of a restructuring.
Most of the cuts will take place in the North Chicago-based company’s Lake County pharmaceutical manufacturing operations...
Abbott blamed the cuts on new fees and pricing pressures associated with the healthcare reform law and a “challenging regulatory environment” at the Food and Drug Administration, which approves new drugs.
(Excerpt) Read more at suntimes.com ...
Are they allowed to say that?
It couldn’t be because of that resent state corporate tax increase could it?
Wonder which Communist or Third World Craphole is getting those 1900 jobs?
The Pharmas bring in too much revenue to merely kill jobs....they will be shipped somewhere else.
Lets see if the GOP is truly committed to ending ObamaCare. Time to defund it now
Not sure. Don’t think these sort of statements fit in with the New Civility.
So, Libs, lets refresh. Are they “axing” jobs because they are taxed and regulated too little or too much? Discuss.
More Hope and Change?.....
If Emanuel remains on the ballot, the people from Illionis will fall over themselves to vote for him.
Sorry, no sympathy from me.
I doubt it, probably a move to china, long in the planning.
Reality bites rats. Tax an activity, directly or indirectly, and you will have less of it.
As much as I like to bash my state for this stupid tax increase and everything else, a big company like Abbott isn’t going to over-react to the tax increase. This is the kind of restructuring that has been planned for a long time, and relates to their overall cost structure, not just one component of it. If they’d wanted to dodge corporate taxes they’d have taken the same route to offshore HQs that other companies did years ago.
That is part of it, but not all of it.
New fees and price controls combine to make formerly profitable products unprofitable. The company drops those products, requiring fewer workers to handle a smaller suite of goods sold. That part of the equation is independent of state tax policies.
The other part of the equation is having decided to cut your workforce, you trim in high-tax states first. That's why Illinois is where the major cuts take place. It is more expensive to do business there than elsewhere. By keeping production in states where the cost of doing business is lowest you improve the remaining bottom line.
That is a bit different than packing up and moving, because there are costs associated with moving. It is generally cheaper to stay where you are for existing work. But any new work goes to low-cost states and any drop in production is targeted in high-cost states, until the company amoeba-like oozes out of high-tax places into low-tax places.
With 0bamaCare sinking its poisonous roots throughout sectors of society, expect more of the same.
Illinois, you sent 0bama to us, first in the Senate, then the White House. You could’ve changed course in November, but you elected Pat Quinn as your governor. Dems operate Chicago like it’s their own personal toybox.
You’re losing jobs and businesses left and right. Do you not see the errors of your ways?
The list, ping
Let me know if you would like to be on or off the ping list
But Barry told us the economy was soaring.
Job cuts in Illinois.... who saw that coming??
Okay, okay... put your hands down everybody!
Come to Florida. We gots subs and we need jobs. :)
San Francisco.
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