Get breaking news alerts via email

Click here to manage your alerts
Boston Scientific to cut up to 1,500 jobs
First Published Oct 24 2013 08:36 am • Last Updated Oct 24 2013 08:36 am

Natick, Mass. » Boston Scientific Corp. plans to shed as many as 1,500 jobs worldwide, or 6 percent of its workforce, in an effort to cut costs.

The company also said Thursday that its CFO is leaving. Boston Scientific is promoting its corporate controller to replace him.

Join the Discussion
Post a Comment

The Natick, Mass.-based medical device maker had already announced up to 1,000 job cuts in January in response to limited growth prospects in certain markets and taxes related to the health care overhaul. That’s on top of a 2011 cost-cutting plan that included the elimination of 1,200 to 1,400 jobs. The company has about 24,000 employees.

In the newest plan, it said it will eliminate 1,100 to 1,500 jobs over the next two years through attrition and layoffs. It hopes to trim annual operating expenses by up to $200 million and invest some of the savings in initiatives that will bolster its growth.

The company’s shares fell 38 cents, or 3.1 percent, to $11.91 in morning trading. The stock has been trading around five-year highs.

Boston Scientific has not posted a net annual profit since 2005, the year before it made a massive, $27 billion dollar acquisition of implantable defibrillator maker Guidant. The purchase has weighed on the company’s balance sheet ever since, even as demand for the heart-zapping implants has declined.

Boston Scientific has also spent years addressing legal allegations about Guidant’s handling of problems with its devices. Last week the company agreed to pay $30 million to settle Justice Department allegations that that Guidant knowingly sold defective heart devices to hospitals that implanted them in Medicare patients from 2002 to 2005.

The company said sales of implantable defibrillators and pacemakers improved slightly compared to last year. Boston Scientific and its competitors have suffered through a broader, multiyear slump in use of the heart-shocking devices following a series of recalls that affected all of the major manufacturers. Defibrillators monitor the heart for dangerous irregular heartbeats and use electrical jolts to shock it back to a normal rhythm.

Boston Scientific on Thursday reported a third-quarter loss of $5 million, or break-even per share, compared with a loss of $664 million, or 48 cents per share, in last year’s quarter. If one-time items are excluded the company said it earned 17 cents per share. Its revenue was unchanged at $1.74 billion.

Boston Scientific said sales of urology and women’s health products, endoscopy products, and neuromodulation devices improved. That countered a decline in sales of heart stents and other products.

story continues below
story continues below

The company said CFO Jeffrey Capello will leave Dec. 31 because he wants to find a broader management position. Capello has been Boston Scientific’s CFO since March 2010. Daniel Brennan, Boston Scientific’s corporate controller and senior vice president, will become its new CFO.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.