Abbott Labs Plans Additional Layoffs Late last month, Abbott Laboratories unveiled plans to lay o

Abbott Labs Plans Additional Layoffs

Late last month, Abbott Laboratories unveiled plans to lay off 700employees as part of its ongoing restructuring efforts.

Most of the layoffs, according to the company, will affect employees who manufacture the company’s heart stents and diagnostic tests. Abbott has seen a decline in stent sales, ahead of the expiration of a supply agreement with sector rival Boston Scientific Corp. Abbott currently sells a version of its Xience stent to Boston Scientific, which pays a 40 percent royalty on sales. Boston Scientific recently replaced that device with its own in-house stent, Promus Element.

Roughly 300 of the eliminated positions will come from the company’s stent business in Southern California. Less than 200 others involve the company’s diagnostic business in Lake County, Ill. Additional reductions will impact the company’s pharmaceutical manufacturing operation in Puerto Rico.

News of the layoffs came several hours after Abbott reported a 12 percent increase in fourth-quarter profit. In October, Abbott surprised investors and the medical technology community with the announcement that it would spin off its branded drug business.