Bristol-Myers Plans Major Revamp

Bristol-Myers Squibb Co. said Monday that it is embarking on a major restructuring program to cut costs, improve productivity and save billions of dollars. The initiative will mean plant closures and job losses, but the company would not say how many.

It is the third cost-cutting initiative for the big health-care and cosmetics company since 1992.

It is attempting to keep profit growing in an era of stiff competition. The company cut 5,000 jobs last year and about 2,200 in 1992. It now employs about 48,000.

Bristol executives briefed securities analysts on the plan at an all-day meeting in New York on Monday.

Some questions remained, however. “It’s ambitious and it’s far reaching and it’s very impressive, but then one has to ask the question: ‘To what extent will it help the bottom line?’ There, they are a bit less committing of themselves,” says Arvind Desai, an analyst with Mehta & Isaly in New York.

The company’s shares lost 75 cents to close at $84 on the New York Stock Exchange.

Bristol also faces another hurdle. During 1993 and ‘94, it had to set aside $1.25 billion to pay for claims by women who say its breast implants have caused diseases. The company plans an additional charge against profit for more claims.