Boston Scientific To Cut Medical Device Jobs

Boston Scientific To Cut Medical Device Jobs

August 2nd, 2011 // 12:16 pm @

Boston Scientific is planning to cut 1,200 to 1,400 jobs globally through attrition and head-count reductions.

The cut in medical device jobs has emerged as the company has come up with a restructuring programme designed to strengthen operational effectiveness and efficiencies, increase competitiveness and support new investments.

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Key activities under the programme, of which the company’s Zero-Based Budgeting (ZBB) Initiative and components of the Emerging Markets Initiative (EMI) are a part, include standardising and automating certain processes and activities; relocating select administrative and functional activities; rationalising organisational reporting structures; leveraging preferred vendors, and taking other actions aimed at increasing overall productivity.

The company estimates the programme will reduce annual pre-tax operating expenses by approximately $225 million to $275 million exiting 2013, a portion of which will be reinvested in targeted areas necessary for future growth, including the previously announced Priority Growth Initiatives (PGI) and EMI.

Programme activities will start to be initiated in the third quarter of 2011 and are expected to be substantially completed by the end of 2013.

The company anticipates the reduction of 1,200 to 1,400 positions worldwide through a combination of employee attrition and targeted headcount reductions as the programme is implemented.

Boston Scientific shared that plans detailing specific employee impacts will be developed for each affected region and business, and the company will consult in due course with relevant employee representative bodies, where required under local laws. The company estimates the programme will result in total pre-tax charges of approximately $155 million to $210 million, and that approximately $150 million to $200 million of these charges will result in future cash outlays.

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