Stryker to cut 5 percent of workforce
Kalamazoo, Mich.-based medical device manufacturer Stryker has announced a plan to cut approximately 5 percent of its workforce—among other restructuring decisions—in an effort to reduce pre-tax operating costs by more than $100 million in 2013.
The changes are scheduled to take effect by the end of 2012, before implementation of the excise tax on medical devices scheduled for 2013, and affected employees will be provided with severance packages, according to Stryker. The company stated in a prepared statement that it “expects to record pre-tax restructuring charges related to these reductions and restructuring activities totaling approximately $150 million to $175 million, of which approximately $85 million to $95 million are expected to be recorded in the fourth quarter of 2011."
The announcement renewed a call from U.S. Sen. Kelly Ayotte (R-N.H.) to repeal the forthcoming excise tax, which is part of the Patient Protection and Affordable Care Act. Ayotte released a statement Nov. 14.
“If this tax goes into effect, it will cause profitable businesses to lose money, cut investment budgets and eliminate jobs or move them overseas,” she said. “Today’s announcement is an example of that, and I will continue to work hard to repeal this burdensome new tax.”
The changes are scheduled to take effect by the end of 2012, before implementation of the excise tax on medical devices scheduled for 2013, and affected employees will be provided with severance packages, according to Stryker. The company stated in a prepared statement that it “expects to record pre-tax restructuring charges related to these reductions and restructuring activities totaling approximately $150 million to $175 million, of which approximately $85 million to $95 million are expected to be recorded in the fourth quarter of 2011."
The announcement renewed a call from U.S. Sen. Kelly Ayotte (R-N.H.) to repeal the forthcoming excise tax, which is part of the Patient Protection and Affordable Care Act. Ayotte released a statement Nov. 14.
“If this tax goes into effect, it will cause profitable businesses to lose money, cut investment budgets and eliminate jobs or move them overseas,” she said. “Today’s announcement is an example of that, and I will continue to work hard to repeal this burdensome new tax.”