Boston Scientific Corp today said that it would eliminate between 1,200 to 1,400 jobs globally, the second major round of cuts announced by the medical device maker since last year.
The move came a day after the Massachusetts-based company said that revenues for the three months ended 30 June rose to $1.9 billion from $1.8 billion for the same period last year. But revenues surged by $100 million because Boston Scientific devices were sold in countries with currencies stronger than the dollar.
Under its global restructuring program, affecting about 5 per cent of the company's 25,000 workforce, the world's second largest implanted heart devices maker will eliminate administrative positions and automate some production work.
Boston Scientific did not specify which divisions and in which locations the cuts would be made but said that it expects the cuts to save between $225 million and $275 million annually.
Boston Scientific, which was grappling with the aftermath of its $27 billion acquisition of Guidant Corporation, and big legal settlements, had eliminated 1,300 jobs worldwide in February last year as part of a restructuring move unveiled by the then new chief executive Ray Elliott
But the company is increasing its workforce in China from approximately 200 to more than 1,200 and announced an additional five-year, $150 million investment in the world's second largest economy to develop local manufacturing capabilities and building a Boston Scientific training centre.