Boston Scientific expands restructuring program
Boston Scientific, a medical device company based in Natick, Mass., has announced an expansion of its 2011 restructuring program intended to build on the progress made under that program to strengthen its operational effectiveness and efficiencies and support new growth investments, which is expected to increase shareholder value.
The company estimates that the expanded restructuring will reduce gross annual pre-tax operating expenses by approximately $100 million to $115 million exiting 2013; and that the total 2011 restructuring program, including the expansion, will reduce gross annual pre-tax operating expenses by approximately $340 million to $375 million exiting 2013. The company expects that a substantial portion of the total program savings will be reinvested in targeted areas for future growth, including strategic growth initiatives and emerging markets. Key activities under the program are expected to be substantially completed by the end of 2013.
As a result of the restructuring, Boston Scientific anticipates the reduction of 900 to 1,000 positions worldwide through a combination of employee attrition and targeted headcount reductions. Plans detailing specific employee impacts will be developed for each affected region and business, and the company will work with employee representative bodies where required under local laws.
The company estimates that the implementation of the restructuring will result in total pre-tax charges of approximately $140 million to $160 million, and that approximately $100 million to $120 million of these charges will result in future cash outlays. Boston Scientific estimates that the implementation of the total program will result in total pre-tax charges of approximately $300 million to $355 million, and that approximately $270 million to $300 million of these charges will result in future cash outlays.