Boston Scientific Corp said on Wednesday it would cut nine percent of its workforce with the loss of about 2,300 jobs in an effort to reduce its operating expenses by about $525 million by 2009.
The medical device company also plans to restructure or sell three of its business units is also actively seeking buyers for the combined Fluid Management/Oncology Venous Access business, as well as its Cardiac Surgery and Vascular Surgery businesses.
Natick, Massachusetts –based Boston Scientific announced in July it was preparing the cost-cutting plan unveiled Wednesday amid pressure from Wall Street to make deep cuts after its stock lost nearly half its value over the past two years.
The job cuts will begin this month and are expected to be completed by the end of 2008.
Downturn
Jim Tobin(pictured), the company's president and chief executive, said Wednesday's cuts "are intended to bring our expenses back in line with our revenues" without hurting long-term prospects.
The moves follow downturns in two key heart device markets and the company's $27 billion acquisition of Guidant Corp in 2006, a deal which sharply increased its debt.
The company said it will record total pretax charges of about $450 million to $475 million, or 20 cents to 22 cents per share.
About $275 million to $300 million will be taken in the fourth quarter, with the remainder recorded throughout 2008 and 2009.
October 18 2007
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