BSX To Cut 1,200+ Jobs
Despite reporting an increase in quarterly profits, Natick medical device maker Boston Scientific Corp. says it will cut 1,200 to 1,500 jobs worldwide as part of a restructuring program between now and the end of 2013.
The company said the restructuring will ultimately cut $225 million to $275 million from its annual pre-tax operating expenses. It said it will invest some of the savings in growth in emerging markets.
Yesterday the company announced it would invest $150 million in China over the next five years and hire up to 1,000 workers there.
The job cuts announced today will come through attrition and layoffs, BSX said. It said it anticipates pre-tax charges of $155 million to $210 million related to the restructuring, mostly from termination benefits.
The job cuts were disclosed within the company's quarterly earnings release. It increased its profits to $146 million in the second quarter of the year, up from $98 million in the same period last year.
BSX's net sales rose $47 million year-over-year to $1.96 billion, and it also reduced expenses related to its debt.
The company prepaid its $750 million outstanding term loan borrowings, reducing its gross debt to $4.2 billion.
Also today, BSX announced a $1 billion share repurchase program. The board of directors authorized the company to buy back up to $1 billion in company stock and also re-approved 37 million shares already authorized under a previous repurchase program.
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