The measures come in response to an expected slump in profits after a number of the troubled US drugmaker’s key products lost patent protection and others face intense competition.
The company forecasts profit this year will fall by two-thirds, the Financial Times reported.
“We will be making sacrifices as a result of these actions,” Schering-Plough Chief Executive Fred Hassan told the FT. "We remain confident that by taking these actions, we will set a strong foundation for long-term growth."
Schering-Plough has warned for months that it would not make enough money this year to pay for its operating activities.
Thursday’s announcement marks the first major strategic steps by Hassan to turn the company around.