Marlborough-based Boston Scientific Corp. is launching a three-year, $800-million restructuring plan that will include layoffs.
Already a Subscriber? Log in
Get Instant Access to This Article
Subscribe to Worcester Business Journal and get immediate access to all of our subscriber-only content and much more.
- Critical Central Massachusetts business news updated daily.
- Immediate access to all subscriber-only content on our website.
- Bi-weekly print or digital editions of our award-winning publication.
- Special bonus issues like the WBJ Book of Lists.
- Exclusive ticket prize draws for our in-person events.
Click here to purchase a paywall bypass link for this article.
Marlborough-based Boston Scientific Corp. is launching a three-year, $800-million restructuring plan that will include layoffs, the company announced Monday.
The company’s board of directors on July 21 approved the implementation of a global restructuring plan aiming to increase efficiency through supply chain optimization and changes to its organizational structure. The restructuring will begin this year and is expected to be completed in 2029.
The company is expecting up to $350 million in costs relating to transferring product manufacturing lines between facilities, up to $300 million in costs relating to employee terminations, and up to $150 million in additional costs relating to restructuring, according to a Monday filing with the U.S. Securities and Exchange Commission.
The company will determine later how exactly employees will be impacted, and it will work with unions when required, it said in the filing. Boston Scientific expects new jobs to be created in growth areas, even as the restructuring plays out.
J.P. Morgan analyst Robbie Marcus said the restructuring was not surprising, noting slowdowns in the company's electrophysiology and Watchman heart implant business, and Stifel analyst Rick Wise said the plan may help Boston Scientific integrate recent acquisitions, according to MedTech Dive.
Boston Scientific purchased a 34% ownership stake in Georgia-based heart valve firm MiRus in May. This came after the firm completed its acquisition of California-based manufacturer Valencia Technologies in April and its plan to purchase of California-based Penumbra for $14.5 billion in January.
The company’s stock price rose 1.2% on the New York Stock Exchange following news of the restructuring, sitting at $46.06 per share at market close.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
