Boston Scientific says to cut up to 1,500 jobs

Reuters News
Posted: Oct 23, 2013 5:41 PM

(Reuters) - Medical device maker Boston Scientific Corp plans to cut up to 1,500 jobs in its latest restructuring effort that aims to save $150 million to $200 million in operating expenses by the end of 2015, the company announced in a regulatory filing.

The company said it will reduce its workforce, currently around 24,000 worldwide, by 1,100 to 1,500 positions through attrition and targeted job cuts.

Boston Scientific said the restructuring program will result in pre-tax charges of about $175 million to $225 million. It expects to take a restructuring charge of about $30 million in the current quarter.

Boston Scientific has been through numerous restructuring efforts and leadership changes over the last several years. It said in the filing that it was undertaking the program "to build on the progress the company has made to address financial pressures in a changing global marketplace, further strengthen its operational effectiveness and efficiency and support new growth investments."

University Corruption
Walter E. Williams

Investors have given a vote of confidence to current management's recent turnaround efforts. Boston Scientific's stock price has more than doubled this year, after about four years in which it had been stuck in the single-digit range.

Boston Scientific shares rose nearly 1 percent to $12.41 in after hours trading from a New York Stock Exchange close at $12.29.

(Reporting by Bill Berkrot, editing by G Crosse)