Pfizer to shutter 4 Hospira distribution centers, laying off 104

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Pfizer has decided that it does not need the legacy distribution sites that it got with the $15 billion buyout of Hospira last year and so will close four facilities across the U.S., consolidating distribution into two Pfizer logistics centers next year. In the process it will whack 104 jobs.

A Pfizer spokeswoman said today a decision has been made to close “legacy Hospira logistics centers” in Atlanta, Dallas, Los Angeles and King of Prussia, PA, by Q2 next year. It will move distribution from those sites to Pfizer logistics centers in Memphis, TN, and Pleasant Prairie, WI.

“Pfizer has conducted a thorough evaluation of the combined distribution network and has decided to consolidate distribution operations into the Memphis Logistic Center and the Pleasant Prairie Logistics Center,” Kimberly Bencker said in an email today. “As a result, we have decided to consolidate the logistics centers to enable us to be more efficient, improve our overall effectiveness, reduce costs and, generally be better able to competitively supply our products to our customers.”

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The closures will result in the loss of 40 jobs in Atlanta, 23 colleagues in Los Angeles, 22 in King of Prussia and 19 in Dallas, Bencker said.

This announcement comes a couple of months after Pfizer said about 100 jobs would be lost by 2019 when it closes a 50,000-square-foot Hospira manufacturing facility in Boulder, CO, that is underutilized.  

Pfizer is already seeing significant upside from the buyout. In Q2 earnings released earlier this month, it reported that Hospira buyout helped drive an 11% revenue increase to $13.15 billion, beating analyst expectations. In fact, without the boost from the Hospira, sales at the company’s Essential Health unit--previously known by the “established products” name--would have slipped by 6%, or 3% without currency setbacks.

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