Boston Scientific Announces Deeper Job Reductions
BOSTON (CBS) – Boston Scientific of Natick plans to cut about a thousand jobs in addition to the 1,200 to 1,400 announced two years ago.
Boston Scientific Senior Vice President Denise Kaigler says the cuts will come through a combination of attrition and “targeted headcount reductions.”
WBZ NewsRadio 1030’s Anthony Silva reports
Kaigler tells WBZ the new medical device tax levied to help fund health care reforms are part of the reason for these reductions.
“There is certainly an impact of the device tax. We are looking at (for 2013) between a $60 million-$70 million impact,” she says.
“There are several growth challenges we’re facing,” she continues. “(They include) maturing markets, worldwide regulatory uncertainty, changing customer purchasing dynamics. We also saw declines in our largest end markets, cardiac rhythm management and interventional cardiology, and the impact of the health care reform measures.”
Kaiger tells me even with those challenges, much of Boston Scientific’s product line is growing, including endoscopy, neuromodulation, urology and peripheral interventions.
The exact locations of the job reductions have not been finalized, but Boston Scientific will save about $350 million a year once the cuts are completed.