Boston Scientific Will Cut 1,100-1,500 Jobs Through 2015

By Michelle Fay Cortez - Oct 24, 2013

Boston Scientific Corp. (BSX), the second-biggest maker of heart-rhythm aids, plans to eliminate as many as 1,500 more positions as the medical-device industry struggles with shrinking markets and development costs.

The job cuts, slated to take place through 2015, should reduce operating expenses before taxes by $150 million to $200 million, Natick, Massachusetts-based Boston Scientific said in a statement today. The move is part of the company’s plan to boost operating income margins to 25 percent from 19 percent now, Chief Executive Officer Mike Mahoney said.

Boston Scientific’s cutbacks build on a 2011 program, which was expanded in January. The move is in line with efforts by competitors including industry leader Medtronic Inc. (MDT) in response to years of weakened demand and pressure to lower prices for some of their biggest products.

“It’s indicative of an industry in transition,” Boston Scientific Chief Financial Officer Jeffrey Capello on a conference call. “There is so much change going on, and organizations have to adapt.”

The cuts in the device industry mirror those occurring among drugmakers including Merck & Co. and Teva Pharmaceutical Industries Ltd. Merck, based in Whitehouse Station, said earlier this month it would fire 8,500 workers, bringing its total job cuts to about 16,000, while Petach Tikva, Israel-based Teva this month announced plans to trim about 5,000 positions.

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http://www.bloomberg.com/news/2013-10-23/boston-scientific-will-cut-1-100-to-1-500-jobs-by-2015.html