Pharmaceutical firms, long regarded some of the most prolific moneymakers in American business, are being subjected to increased profit pressure from all sides, including generic drug firms, government regulators and the new health care reform, which have heightened up scrutiny.

Abbott Laboratories on Wednesday admitted the challenging environment and stated that it would cut one thousand nine hundred jobs, mostly from its American operation, with one thousand of them in Illinois.

The drug and medical-product major, based in North Chicago stated that the Illinois jobs will be cut down from pharmaceutical sales, marketing and manufacturing operations and mostly will affect the Lake County, where the company employs thirteen thousand. Half of the Illinois workers were given notice on Wednesday, with the other five hundred or so being let go in the next several years.

The Chairman and Chief Executive of Abbott named Miles White blamed the impact of the health care overhaul law as well as the pressure of federal regulators for the layoffs. Health insurers are continuously encouraging patients to use cheaper generic medicines first before trying out new brand names that might not have more benefit.

Consumers and lawmakers had criticized the Food and Drug Administration in the past for letting unsafe drugs like the pain killer Vioxx to reach Americans. FDA is increasing up scrutiny of what it will approve as well as what is already on the market.

White stated to analysts on a Wednesday conference call that it is frankly more difficult to get products approved.

Abbott recently had taken back Meridia, its diet drug from the American market. The drug was associated with an increased risk of heart attack and stroke, and members of a government panel also stated that it offered patients little weight-loss benefit.