Boston Scientific planning more job cuts

Tuesday 29 January 2013 18.52
Medical device maker said its fourth-quarter net income shrank 44% to $60m
Medical device maker said its fourth-quarter net income shrank 44% to $60m

Boston Scientific plans to cut as many as 1,000 additional jobs this year as the medical device maker expands a push to reduce operating expenses.

The company has not decided where additional cuts will be made, a company spokesman said.

Boston Scientific is the largest medical device company in Ireland and employs 4,900 people in four manufacturing sites in Galway, Cork, Clonmel in Co Tipperary and Letterkenny in Co Donegal.

It had already planned 1,200 to 1,400 job cuts as part of a restructuring plan that started in 2011. The company employs roughly 24,000 people worldwide, so total cuts could amount to 10% of the company's jobs.

It said today that it expects the new round of cuts to range from 900 to 1,000 positions, and they will include layoffs as well as the elimination of unfilled positions.

The company also said today that its fourth-quarter net income shrank 44% to $60m, or 4 cents per share, as it absorbed charges for restructuring and litigation. Not counting these charges, earnings were 18 cents per share.

Revenue slipped 1% to $1.82 billion. Analysts forecast, on average, earnings of 11 cents per share on $1.76 billion in revenue.

Boston Scientific expects to reduce annual operating expenses, before taxes, by about $340m to $375m by the end of this year. That includes expected savings of $100-$115m from the additional restructuring measures announced today.

For the year, Boston Scientific expects adjusted earnings of 64 to 70 cents per share on revenue of $7.05 billion to $7.35 billion. Wall Street predicted profit of 43 cents per share on revenue of $7.11 billion.