Wyeth (WYE) notified about 1,200 U.S. sales representatives this week that their jobs were being eliminated under a previously announced cost-cutting program.

The Madison, N.J., drug maker told sales reps in its pharmaceutical and consumer-healthcare divisions on Wednesday the job cuts would go into effect at the end of March, spokesman Doug Petkus told Dow Jones Newswires. The affected positions are spread throughout the U.S.

"These reductions are intended to optimize the size of the selling force and will facilitate achievements of our business goals this year," Petkus said Thursday.

Petkus declined to say how big Wyeth's U.S. sales force is, or what percentage of the sales force was being eliminated.

The affected sales reps appear to comprise about 2% of Wyeth's total work force. Wyeth had 50,527 employees worldwide as of Dec. 31, including 26,082 in the U.S., according to its annual report.

The sales-force layoffs are part of a cost-cutting program announced by Wyeth in January. Wyeth is facing numerous challenges, including unexpected generic competition for one of its best-selling drugs, the Protonix heartburn pill, as well as setbacks in its efforts to get new drugs to market.

Under the cost-cutting program, dubbed "Project Impact," Wyeth said it plans to reduce its work force by 4% to 6% by the middle of this year, and by 10% over the next three years. Wyeth has said the cuts would include sales and marketing positions related to Protonix in light of the new generic competition.

In an earlier round of sales-force reductions, Wyeth announced in 2005 it would cut its full-time, U.S. primary-care sales force of 2,500 reps by 25% to 30%, while at the same time hire part-time reps for a net reduction of about 15% .

Wyeth shares rose by a penny to $41.84 Thursday. Shares slipped to $41.71 in after-hours trading.

- Peter Loftus; Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com

  (END) Dow Jones Newswires
  03-27-08 1737ET
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