Despite better-than-expected quarterly results, Boston Scientific (NYSE:BSX) said on Tuesday that it will trim its payroll in order to reduce costs.
Investors liked the news, sending shares of Boston Scientific surging more than 5% in Tuesday morning trading.
Under a 2011 restructuring strategy, the company had previously announced job cuts of between 1,200 and 1,400. The company will now trim up to an additional 1,000 positions, as much as 4% of its 24,000 employee workforce in 2013, the Associated Press noted.
Boston Scientific posted earnings of $60 million during the fourth quarter, down 44% from last year on restructuring and litigation charges. Adjusted earnings came in at 18 cents a share, topping Wall Street forecasts of 11 cents per share. The company predicted adjusted full year earnings of between 64 cents and 70 cents a share, which also exceeded the 43 cents a share anticipated by analysts.
The job cuts will save the company between $100 million and $115 million in annual expenses. It hopes to trim operating expenses by up to $375 million a year through restructuring. Company officials did not indicate which operations would see job cuts.