Boston Scientific Plans 1,000 More Job Cuts

by Christopher Freeburn | January 29, 2013 12:07 pm

jobless unemployment 630 300x227 Boston Scientific Plans 1,000 More Job Cuts[1]Despite better-than-expected quarterly results, Boston Scientific (NYSE:BSX[2]) said on Tuesday that it will trim its payroll in order to reduce costs[3].

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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/06/jobless-unemployment-630.jpg
  2. BSX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BSX
  3. it will trim its payroll in order to reduce costs: http://www.washingtonpost.com/business/boston-scientific-plans-another-round-of-job-cuts-4th-quarter-profit-plunges/2013/01/29/1bf9b860-6a1a-11e2-9a0b-db931670f35d_story.html

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