Here are the long-awaited details of the reorg. The drugmaker wants to reduce the number of brands in its portfolio by 60 percent between 2007 and 2011; reduce the number of manufacturing plants by more than half by the end of 2010; reduce headcount by 10 percent between this year and 2010. But “while we are reducing headcount in certain functions, we will continue to invest in R&D, biologics and commercialization talent,” ceo Jim Cornelius says in a statement.

Moreover, Bristol-Myers plans to sell its Medical Imaging business, and may also try to unload its ConvaTec and Mead Johnson businesses. “We remain fully aware of the important contributions these businesses have made to earnings and cash flow, and we will take these factors into full consideration when weighing our strategic options,” says Cornelius.

This would leave four core businesses: specialty meds, cardiovascular and metabolic drugs, mature pharmal brands and the Health Care Group,

With about 43,000 employees worldwide, the moves are expected to save $1.5 billion, although the costs associated with the downsizing are forecast to reach $900 million to $1.1 billion on a pre-tax basis, with approximately $300 million expected to be incurred this year and $400 million to $500 million expected to be incurred in 2008. Already, the drugmaker has announced plans to close plants in Puerto Rico and Panama. The Park Avenue headquarters in New York will also shrink as fewer floors will be occupied.

To appease shareholders, the drugmaker declared an 11 percent dividend increase, the first increase since 2002, resulting in a quarterly dividend of 31 cents, or $1.24 for the full year in 2008. Cornelius also projects high single-digit revenue growth; overall flat gross margin, with improvement in the pharma marging; mid single-digit growth in R&D costs; all other operating expenses flat with modest increases in advertising and promotion, offset by a significant reduction in G&A expense; and an increase in the effective tax rate to approximately 24 percent.

To listen to Cornelius and his team talk about cutbacks, finances and research, you can click here.

UPDATE: About 1,300 employees have already been notified that their jobs are being eliminated, and another 3,500 will get the word by the end of next year. That adds up to 4,800 layoffs, but other jobs will be added, which accounts for approximately 4,300 layoffs. ANOTHER UPDATE: Cornelius now corrects himself during the Q&A and says the layoffs will play out over three years.