West Pharmaceutical to Cut 250 Jobs

West Pharmaceutical Services Inc. said Wednesday it will cut its Tech Group segment by about 250 workers, or 13 percent, as part of a restructuring plan.

The Lionville, Pa.-based company said it will reduce spending throughout the segment by consolidating two tool production operations into one facility, in Scottsdale, Ariz., and by reductions and consolidations at other production, engineering and administrative operations in North America.

The company expects to complete the plan, designed to "align the plant capacity and work force with the current business outlook," in one year.

West Pharmaceutical estimates it will incur up to $12 million in restructuring charges, including $2.5 million, or 5 cents a share, in 2007 and an estimated $9.5 million, or 19 cents a share, in 2008.

The company expects to realize $3 million of cost savings in 2008 and annual operating savings thereafter of about $7 million.

West Pharmaceutical backed its 2007 and 2008 revenue and earnings outlook, excluding restructuring and impairment charges.