Abbott Labs (ABT) Is Laying Off 3,000 People

Abbott Labs (ABT) is cutting 3,000 jobs primarily in its European operations. Most of the cuts will cut jobs in manufacturing, commercial operations, research and development, and staff function. The move follows the company's recent acquisition of Solvay Pharmaceuticals.

According to the AP, the company “expects $810 million to $970 million in restructuring costs and $310 million in integration costs.” The deal is expected to earn significant value to shareholders and grow earnings up to 20 cents per share in 2 years.

Dividend investors may find Abbott is a great income play with its generous 3.4% dividend yield. Shares currently trade at $52.15 per share which is just 14 times this year's earnings. That's a reasonable valuation for a company that has been able to grow earnings at a 12% clip over the past five years.