Boston Scientific plans job cuts, 4Q profit falls
Boston Scientific plans to cut as many as 1,000 additional jobs this year as the medical device maker expands a push to reduce operating expenses.
The Natick company hasn’t decided where additional cuts will be made, said spokesman Steven Campanini. Boston Scientific Corp. had already planned 1,200 to 1,400 job cuts as part of a restructuring plan that started in 2011. It employs roughly 24,000 people worldwide, so total cuts could amount to 10 percent of the company’s jobs.
Boston Scientific expects the new round of cuts to range from 900 to 1,000 positions, and they will include layoffs as well as the elimination of unfilled positions.
The company also said Tuesday that its fourth-quarter net income shrank 44 percent to $60 million, or 4 cents per share, as it absorbed charges for restructuring and litigation. Not counting these charges, earnings were 18 cents per share. Revenue slipped 1 percent to $1.82 billion.
Analysts forecast, on average, earnings of 11 cents per share on $1.76 billion in revenue, according to FactSet.
Boston Scientific expects to reduce annual operating expenses, before taxes, by about $340 million to $375 million by the end of this year. That includes expected savings of $100 million to $115 million from the additional restructuring measures announced Tuesday.
For the year, Boston Scientific said in a press release that it expects adjusted earnings of 64 to 70 cents per share on revenue of $7.05 billion to $7.35 billion.
Wall Street predicted profit of 43 cents per share on revenue of $7.11 billion.
Shares rose 20 cents, or 2.9 percent, to $7.06 Tuesday before markets opened.