November 16, 2018

Boston Scientific planning $150M restructuring, 'limited' layoffs

Photo | Courtesy
Boston Scientific is headquartered in Marlborough.

Marlborough medical device maker Boston Scientific has announced a restructuring plan including up to $150 million in annual cuts.

The biotech giant plans to begin the cost-cutting activities in 2019 with the goal of substantial completion by the end of 2021.

The program is expected to reduce annual pre-tax operating expenses by $100 million to $150 million by the end of 2022. A substantial portion of the savings will be reinvested in strategic growth initiatives.

In regulatory filing Thursday, Boston Scientific said its employee base will remain "relatively unchanged" after the restructuring, but new jobs in areas of growth will be created as "limited headcount reductions" take place from the restructuring.

The company expects to pay up to $100 million in termination benefits and up to another $150 million in other costs related to the restructuring, including program management, accelerated depreciation, fixed asset write-offs and costs to transfer product lines among facilities.

The estimated cost of the restructuring is between $200 million and $300 million, with $180 million to $280 million to result in future cash outlays, the company said.

Up to another $50 million is planned to pay for consultant fees and costs to cancel contracts.

The company in the third quarter generated sales of about $2.4 billion and a profit of $432 million, year-over-year increases of 7.7 percent and 34.5 percent, respectively.

In 2018 alone, Boston Scientific has announced eight acquisitions totaling more than $2 billion, including a potential $600 million purchase of Bedford-based prostate health firm Augmenix announced in September.

Comments

Type your comment here:

Today's Poll What is the Blackstone Heritage Corridor's best attribute? <>
ADVERTISEMENTS
Most Popular on Facebook
Copyright 2017 New England Business Media