Thursday, August 30, 2012

Boston Scientific Corporation (NYSE:BSX ) to Cut more Jobs, Split its cardiac devices business

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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