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Thursday, February 11, 2010
Boston Scientific restructures, cutting up to 1,300 jobs
By Mass High Tech Staff
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Boston Scientific Corp. said it will restructure the company through a series of moves that will include cutting between 1,000 and 1,300 jobs, or 8 to 10 percent of the Natick-based company’s global work force.
One large structural change will see the Cardiac Rhythm Management Group unit that used to be the firm Guidant, which Boston Scientific bought in 2006 for $27 billion, merged with the Cardiovascular Group into a single operation, headed by current president of the Cardiovascular Group Hank Kucheman.
The former president of that Cardiac Rhythm Management Group, Fred Colen, has been promoted to the new role of executive vice president and chief technology officer.
In addition, Jeff Capello will be promoted to executive vice president and chief financial officer as of March 1. Capello came to Boston Scientific (NYSE: BSX) in 2008 and has served as chief accounting officer and corporate controller.
The changes will have a global reach, as Boston Scientific will close all of its international headquarters. The presidents of Japan, Europe and the newly formed Emerging Markets Group — whose leader has yet to be identified — will report directly to the CEO.
According to the company, Boston Scientific will get hit with pre-tax charges of approximately $180 million to $200 million because of the restructuring. The vast majority of the restructuring costs will be cash charges, the company said. A comprehensive list of the changes can be found at Boston Scientific’s website.
At the beginning of the month, Boston Scientific agreed to pay $1.725 billion to settle three patent disputes with Johnson & Johnson (J&J) over whose patents cover certain stent technology. While the cases have been tried and settled — both companies were found to have infringed on each other’s patents — the settlement was scheduled to be determined in court this month.
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