Boston Scientific Corp announced it was cutting some 6% of its workforce — 1,500 jobs — in a move to try to reduce costs.
The company has 24,000 employees.
The Natick, Mass.-based medical device maker had already announced in January some 1,000 job cuts — which it attributed to market slow down and costs associated with the health care act.
In the newest plan, it said it will eliminate 1,100 to 1,500 jobs over the next two years through attrition and layoffs. It hopes to trim annual operating expenses by up to $200 million and invest some of the savings in initiatives that will bolster its growth.
Boston Scientific has not posted a net annual profit since 2005, the year before it made a massive, $27 billion dollar acquisition of implantable defibrillator maker Guidant. The purchase has weighed on the company’s balance sheet ever since, even as demand for the heart-zapping implants has declined.
The AP reports that Boston Scientific reported a third-quarter loss of “$5 million, or break-even per share, compared with a loss of $664 million, or 48 cents per share, in last year’s quarter. If one-time items are excluded the company said it earned 17 cents per share. Its revenue was unchanged at $1.74 billion.”
The company’s shares fell 38 cents, or 3.1%, in morning trading, down from its 5-year high.