New York-based Pfizer plans to reduce its global research staff - currently about 10,000 people - by 5 percent to 8 percent this year, company spokeswoman Kristen Neese said Tuesday.
"This is in line with our refocused research areas," Neese said.
Pfizer's research and development headquarters are in Connecticut in New London and Groton.
The move comes after the company announced in September that it was narrowing its research focus to six disease areas Alzheimer's, cancer, schizophrenia, pain, inflammation and diabetes and abandoning new research in other areas.
That included cardiovascular disease, where Pfizer had been a dominant player with its $13 billion-a-year cholesterol fighter Lipitor, the world's top-selling drug. But Lipitor is expected to face generic competition in late 2011, and efforts to come up with a successor drug failed, including the flameout of once-promising torcetrapib after it was linked to heart problems in late-stage human testing.
Already, Lipitor sales have dipped slightly, apparently partly due to consumers trying a much-cheaper generic form of a similar drug, Zocor.
"This is probably not the end," said biopharmaceuticals analyst Erik Gordon, a professor at University of Michigan Business School.
He said Pfizer likely has identified 500 to 800 scientists not in the new core areas in its first round of review, but more could be cut later.
Gordon said the cuts are not due to the recession but to the long-term problems plaguing the entire drug industry. Those include stiffer generic competition and general lack of research productivity.
Also last fall, Pfizer said it was reorganizing its business units, including replacing its current geographic divisions with new ones centered on primary care, specialty care and operations in emerging markets.
But analysts have been saying recently that they expect Pfizer to make a big move, such as a major acquisition that would allow massive job cuts to save money while adding drugs to its pipeline.
Under a major restructuring begun in January 2007, Pfizer has eliminated roughly 13,500 jobs and closed eight plants already.
Pfizer shares were up 16 cents at $17.52 in midday trading.