4. August 2011 14:42
Cardiac device corporation Boston Scientific will cut up to 1400 jobs in the US by the end of 2013, but its expansion in China will create 1000 new jobs.
The domestic job cuts are part of a programme to reduce the company’s annual costs by as much as $275 million.
The news came a day after Boston Scientific’s announcement that it plans to invest $150 million over the next five years to grow its business in China, where it hopes to create 1,000 jobs in manufacturing and clinician training.
Ray Elliott, CEO of Boston Scientific, commented that the US market for implantable defibrillators – a major source of revenue for the company – had been particularly weak in the last quarter, for reasons including concerns about possible over-use and cost pressures being exerted by hospitals.
Boston Scientific is also the leading supplier of drug-eluting stents (DES), the market for which has fallen both in the US and internationally since 2006 due to questions over safety.
The downturn in the domestic cardiac devices market has affected Boston Scientific’s US competitors also. Medtronic announced it was cutting 2000 jobs earlier this year, while Cordis is dropping out of the DES market altogether.
“The company anticipates the reduction of 1200 to 1400 positions worldwide,” said Boston Scientific spokesman Erik Kopp. “However, this will occur through a combination of factors, including employee attrition and targeted headcount reductions.”