According to people familiar with the matter, Pfizer plans to cut $1 billion

in annual costs, The Wall Street Journal reported on Tuesday.

 The cutbacks, which come in addition to those previously announced in the company’s R&D operations, were confirmed, although not detailed, recently by CEO Ian Read, who said "we’re going to take out another billion dollars of our expenses."

The sources stated that Pfizer executives have been reviewing operations and plan to begin implementing the cuts later this year, with the goal of reducing expenses by $500 million this year and the same amount in 2012.

The cuts, which sources claimed will take place largely at the administrative level, aim to reduce duplication of work between Pfizer’s New York headquarters and offices elsewhere.

The people also suggested that the company is reviewing its spending for promotion, travel, entertainment and consultants, as well as sales representatives' spending on printed materials, supplies and electronics.

 The Wall Street Journal noted that the cost reductions would trim nearly 5 percent from Pfizer's selling, informational and administrative expenses, which totaled $19.6 billion last year.

 As previously announced, the company is also considering whether to sell non-core units that produce animal drugs, infant formula and consumer healthcare goods.

Commenting on the news, a Pfizer spokesman said "we're focused on operating in new, more effective and efficient ways”