Briefing: Boston Scientific

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Coming off a less-than-ideal year, Natick-based medical device maker Boston Scientific Corp. (BSX) is setting its sights on the challenges it anticipates in 2013. Sales in 2012 fell 5 percent, to $7.2 billion, and the company posted a net loss of $4.1 billion. That's a steep fall from a net profit of $441 million in 2011. Last week, BSX announced plans to extend its 2011 restructuring plan, which will include job cuts.

What's the company's restructuring strategy?

BSX plans to cut $340 million from its operating expenses by the end of 2013. To do so, between 900 and 1,000 of the company's 24,000 jobs will be eliminated worldwide through "employee attrition and targeted headcount reductions." Company spokesman Steven Campanini said it's unknown where layoffs will be because the company has to develop a plan for each region and business. He said BSX will look for reductions within its underperforming business units and cut other costs through operational efficiencies.

How will this impact Massachusetts?

It's possible that Massachusetts will see fewer job cuts than other areas because it's home to the company's corporate headquarters and its endoscopy unit, a business unit seeing the most sales growth in the company. However, Campanini noted that corporate-wide reductions will also be looked at, including overhead costs.

Why is a restructuring extension necessary?

Five of BSX's core businesses — endoscopy, peripheral interventions, urology/women's health, neuromodulation and electrophysiology — are still growing, but the company's two largest areas — interventional cardiology and cardiac rhythm management — are continuing to decline. "We're shoring up the two biggest pieces of our revenue and investing in the smaller pieces that are growing at a faster rate," Campanini said. He also said BSX anticipates an extra $75-million expense hit in 2013 due to the start of the federal medical device tax that was part of the 2010 Affordable Care Act.

What are BSX's expectations for 2013?

In its 2012 financial results announced last week, BSX said first-quarter sales are expected to land between $1.7 billion and $1.8 billion, with earnings of between 4 and 7 cents per share. For the year, sales should be stable compared to last year, ranging from $7 billion to $7.4 billion.

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