More job cuts are in the offing by Boston Scientific
Corporation(NYSE:BSX), which is also planning to break up its cardiac devices
business.
No details were available on how many jobs would be
lost or why the cardiac unit is being split.
Boston Scientific makes heat stents and implantable
heart defibrillators, demand for which has been weak and diminishing over
several years partly due to the slowing economy and also more stringent
regulations over the use of these equipment.
Reuters which reported the job losses citing a source
said that the company is expected to announce the layoffs within the next
couple of months.
"The source said details of the changes were
included in an internal memo from acting CEO Hank Kucheman earlier this
month," Reuters said.
"Boston Scientific will separate its cardiac
rhythm management unit, which makes heart pacemakers and implantable
defibrillators, from its interventional cardiology business, which makes
stents, the source said."
Former chief executive Raymond Elliot had combined the
units less than three years ago. He expected the business to benefit from the
expertise of a shared sales force.
Elliot had joined the company in 2009, when it had
been floundering under its former CEO Jim Tobin. Elliot streamlined the
company's operations, reduced its debt, sold off non-core business and cut 2000
jobs.
However he left the company after a couple of years
much to the distress of investors and analysts. Since then the company has been
languishing.
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