Baxter trims staff, restructures management.

Baxter International, Deerfield, IL, recently unveiled a plan to offset flagging earnings by taking a onetime $925 million charge and setting in motion staff reductions of 4500 employees. The layoffs, representing 7% of the workforce, will occur over the next five years. Of the $925 million charge, $700 million is earmarked to cover workforce reduction costs, with the remainder set aside to cover the future costs of litigation for silicone breast implants and blood-clotting concentrates. As a result of the charges, the company reported a net loss for the quarter and for the year.

In restructuring news at Baxter, a new top level team, defined by the company as the "office of the chief executive," has been created. Made up of Vernon Loucks. Jr., president, James Tobin, chief operating officer and executive vice presidents Lester Knight and Tony White, the office of the chief executive is designed to aid in streamlining operations and reducing layers of management. Baxter is also combining the sales forces of more than 20 divisions into one integrated organization that will be managed in account teams responsible for selling across all divisions.