American Home to eliminate 300 jobs

November 30, 1994|By Bloomberg Business News

MADISON, N.J. -- American Home Products Corp. said yesterday that it will eliminate 300 jobs as the company begins to digest its $9.7 billion acquisition of American Cyanamid Co.

About two-thirds of the jobs, which are mostly administrative, will be cut at Cyanamid's former headquarters in Wayne, N.J.

The remaining layoffs will come at Cyanamid's office in Washington, plant in Danbury, Conn., and other locations.

The layoffs will be effective Jan. 31.

The company has no plans to take a charge, said Louis Cafiero, a spokesman for American Home, a Madison, N.J.-based provider of health care products.

"These decisions were made after careful management review which identified positions that duplicated those at AHP's existingheadquarters," the company said.

Shares of AHP closed up 62.5 cents at $64.875 in trading yesterday on the New York Stock Exchange.

Analysts have been expecting American Home, the maker of Robitussin and Advil, to cut some of Cyanamid's 26,550 employees since its offer was accepted in August.

American Home's debt load ballooned to about $9 billion as a result of the acquisition, and slashing jobs is the first step in reducing expenses. The company most likely also will close duplicate factories in the United States and abroad, said David Saks, an analyst with Gruntal & Co.

"I wouldn't be surprised if we eventually see 3,000 or 4,000 layoffs," Mr. Saks said.

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