Boston Scientific, a medical device manufacturer based in Natick, Massachusetts, announced that it would cut up to 1000 jobs as it deals with the fallout from the United States healthcare overhaul, the Affordable Care Act and limited growth potential in some markets.
While the recent layoffs spell dire news for many employees at Boston Scientific, investors remain upbeat. Following the release of positive fourth-quarter results on Tuesday, shares of the company’s stock rose on Tuesday. In addition, Boston Scientific’s 2013 profit forecast beat analysts’ expectations.
To reduce costs at the company, Boston Scientific will shed an estimated 900 to 1,000 jobs in 2013. In addition to layoffs, the job cuts will eliminate positions at the company that are currently unfilled. These layoffs follow a 2011 restructuring plan that led to 1,200 to 1,400 job cuts.
As of now, Boston Scientific employs approximately 24,000 around the world. The total workforce reduction planned for 2013 could result in a four percent reduction in the company’s human capital. According to Steven Campani, a spokesman at Boston Scientific, the company has not yet decided where it will cut jobs.
According to information from the company, Boston Scientific expects to cut costs by $340 to $375 million by the end of the year. This figure includes an additional $100 to $115 million in savings from additional restructuring initiatives.