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Boston Scientific to Initiate Restructuring in 2019, Some Job Losses Expected

November 21, 2018, 09:00 AM
Filed Under: Bankruptcy

The Board of Directors of Boston Scientific Corporation approved a new global restructuring program, accoring to a regulatory filng with the SEC. The program is intended to support the Company’s effort to improve operating performance and meet anticipated market demands by ensuring that the Company is appropriately structured and resourced to deliver sustainable value to patients and customers. Key activities under the program include supply chain network optimization intended to maximize the Company’s global manufacturing and distribution network capacity, and building functional capabilities that support business growth.

These activities are expected to be initiated in 2019 and to be substantially complete by the end of 2021. The Company estimates the program will reduce gross annual pre-tax operating expenses by approximately $100 million to $150 million by the end of 2022 as program benefits are realized, and expects a substantial portion of the savings to be reinvested in strategic growth initiatives.

The Company anticipates that its overall employee base will remain relatively unchanged upon completion of the restructuring program. While new jobs are created in areas of growth and resources are deployed to support an expanding portfolio and growing global market needs, the Company does expect some employee attrition and limited headcount reductions to result from these restructuring activities.

The Company estimates that the implementation of the program will result in total pre-tax charges of approximately $200 million to $300 million, of which approximately $180 million to $280 million is expected to result in future cash outlays.


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