Boston Scientific restructuring to reduce expenses; layoffs to take place
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Marlborough-based Boston Scientific has partnered with Minnesota's Mayo Clinic.
Boston Scientific Corp. is undertaking a restructuring program that officials say could result in as much as $150 million in savings per year, although the company indicated some employees will be phased out as the company focuses on new areas of growth.
The Marlborough company announced on Wednesday that it would be implementing a program that would reduce gross annual pre-tax operating expenses by approximately $115 million to $150 million by the end of 2020. A release from the company did not go into details about where the savings would come from, but said the program would be focusing on operating efficiencies, global commercialization, key growth markets and continuing implementation of the company's plant network optimization strategy.
The company said it expects employee attrition and “targeted headcount reductions” to be a part of the program. However, the company said it anticipates overall employee headcount will “remain relatively unchanged” once the program is complete as new jobs will be created in areas of growth.
Implementation of the program is expected to cost $175 million to $225 million before taxes. Portions of the program will begin immediately while all activities are expected to be substantially completed by the end of 2018, subject to any employee representative consultative procedures required under local laws, according to Boston Scientific.
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