Stocks tumbled today as investors were spooked by earnings news and disappointment with earnings from pharmaceutical giant Pfizer (PFE, news, msgs), which also announced it will cut 10,000 jobs. Pfizer shares were down 1.5% this afternoon to $26.81 after the pharmaceutical giant announced it will cut 10,000 jobs — 10% of its worldwide total — in a bid to cut costs by up to $2 billion a year by 2008.
The announcement came as CEO Jeff Kindler hosted an analyst meeting today in New York. Today’s cuts come on top of a previously announced plan to save $4 billion by 2008. Before the job cut announcement, the drug giant reported fourth-quarter earnings of 43 cents per share before extraordinary items, down from 49 cents in the same period a year ago, but a penny ahead of analysts’ estimates.
It’s difficult to have any sympathy for Pfizer; let’s just hope that Pfizer’s spin doctors aren’t able to parlay the company’s mismanagement into more Big Pharma largesse from the feds. Read Pfizer’s press release here. For blog reaction to the news, check out PharmaGossip, Peter Rost, and Daily Kos.16