Boston Scis restructuring includes about 1,300 layoffs
Boston Scientific's restructuring plan includes standardizing and automating processes; relocation of activities; rationalization of the company reporting structure; and leveraging vendors. Under the plan, which is set to begin in the third quarter, an estimated 1,200 to 1,400 positions globally will be eliminated.
The company anticipated that the "POWER" business plan may cost nearly $10 million during this year's third quarter. However, Boston Scientific speculated that the restructuring plan will reduce the annual pre-tax operating expenses nearly $225 million, to $275 million exiting 2013. The restructuring plan is expected to result in total pre-tax charges of approximately $155 million to $210 million, according to Boston Scientific, which speculated that between $150 million to $200 million of these charges will result in future cash outlays.
A portion of these monies will be reinvested in other areas, including its priority growth initiatives (PGI) and emerging markets initiative (EMI), according to Natick, Mass.-based Boston Scientific.
The expected layoffs will be a combination of employee attrition and targeted headcount reductions as the program is implemented. The company said that it will provide plans to discuss the employee impacts for each region and business sector.
The company anticipated that the "POWER" business plan may cost nearly $10 million during this year's third quarter. However, Boston Scientific speculated that the restructuring plan will reduce the annual pre-tax operating expenses nearly $225 million, to $275 million exiting 2013. The restructuring plan is expected to result in total pre-tax charges of approximately $155 million to $210 million, according to Boston Scientific, which speculated that between $150 million to $200 million of these charges will result in future cash outlays.
A portion of these monies will be reinvested in other areas, including its priority growth initiatives (PGI) and emerging markets initiative (EMI), according to Natick, Mass.-based Boston Scientific.
The expected layoffs will be a combination of employee attrition and targeted headcount reductions as the program is implemented. The company said that it will provide plans to discuss the employee impacts for each region and business sector.