Bos Scientific shuffles leadership team, cuts 1,000+ jobs
Boston Scientific has begun to restructure its leadership team and modify the organization--including significant changes to its international headquarters in Natick, Mass.--and initiated layoffs of 8 to 10 percent of its non-direct labor base.
Boston Scientific said gross expenses are expected to be reduced by $200 million and $250 million (5.5 to 7 percent), and that workforce cutbacks of 1,000 to 1,300 will result. Boston Scientific said the affected employees will be offered a severance package and that layoffs would exclude manufacturing direct labor positions.
The company said these cost measures would result in a pre-tax charge of approximately $180 to $200 million, with the majority in cash charges.
Under the shake up, the company will combine its cardiovascular group and cardiac rhythm management group (formally known as Guidant) to help initiate changes in procurement and reimbursement.
Boston Scientific's international headquarters will be eliminated and the
presidents of Japan, Europe and its emerging markets group will report
to Boston Scientific's CEO.
Paul Donovan, a spokesperson for Boston Scientific, said that the International headquarters is one component of the Natick, Mass., offices, and this move will eliminate a layer of management within the company. However, the company will not designate a new International headquarters.
The company also will undergo a series of leadership changes including the selection of Hank Kucheman as executive vice president (VP) and president of its combined cardiology, rhythm and vascular group.
According to Boston Scientific, other leadership changes include the appointment of:
Boston Scientific said gross expenses are expected to be reduced by $200 million and $250 million (5.5 to 7 percent), and that workforce cutbacks of 1,000 to 1,300 will result. Boston Scientific said the affected employees will be offered a severance package and that layoffs would exclude manufacturing direct labor positions.
The company said these cost measures would result in a pre-tax charge of approximately $180 to $200 million, with the majority in cash charges.
Under the shake up, the company will combine its cardiovascular group and cardiac rhythm management group (formally known as Guidant) to help initiate changes in procurement and reimbursement.
Boston Scientific's international headquarters will be eliminated and the
presidents of Japan, Europe and its emerging markets group will report
to Boston Scientific's CEO.
Paul Donovan, a spokesperson for Boston Scientific, said that the International headquarters is one component of the Natick, Mass., offices, and this move will eliminate a layer of management within the company. However, the company will not designate a new International headquarters.
The company also will undergo a series of leadership changes including the selection of Hank Kucheman as executive vice president (VP) and president of its combined cardiology, rhythm and vascular group.
According to Boston Scientific, other leadership changes include the appointment of:
- Joe Fitzgerald as leader of its endovascular unit, including peripheral solutions, neurovascular, imaging, electrophysiology and its Canadian business unit;
- Fred Colen will report as the executive VP and chief technology officer and will oversee its corporate research and development group;
- Steve Moreci, the current endosurgery group president, as team leader of global sales. The company said this team will drive sales and strive to reach out to customers on an international basis. The modification will integrate its corporate sales group to its global sales team;
- Sam Leno as executive VP and chief operations officer. Leno will oversee the company’s finance, information systems, manufacturing and operations, effective March 1;
- Jeff Capello as executive VP and chief financial officer. Capello previously served as its chief accounting officer and corporate controller;
- Tim Pratt as executive VP and chief administrative officer. In addition, Pratt will continue to serve as its general counsel and secretary;
- Jean Lance, who previously served as chief compliance officer and VP and general counsel for its cardiovascular group, as senior VP, chief compliance officer and member of its executive committee;
- Dan Brennan as senior VP and corporate controller;
- Larry Neuman as senior VP of restructuring and integration; and
- Andy Milani as senior VP of human resources. Prior to this appointment he served as chief of staff in the U.S. Army in the Special Operations Command.