Boston Scientific restructuring includes staff cuts, possible sale of business units

By Lisa Kerner

Charlotte, N.C., Oct. 17 - Boston Scientific Corp. announced several new initiatives on Wednesday, including a restructuring or sale of several business units and head count reductions of some 2,300 positions worldwide.

The measures are designed to enhance short- and long-term shareholder value, according to a company news release.

Boston Scientific plans to reduce its operating expenses by an estimated $475 million to $525 million in 2008, or about 12% to 13%, with a further reduction of about $25 million to $50 million in 2009.

Specific restructuring plans include:

• Combining the peripheral interventions and interventional cardiology businesses under a single management structure;

• Integrating the electrophysiology business with the cardiac rhythm management business;

• Consolidating the international group into two regions, from three;

• Combining the oncology venous access franchise with the fluid management business; and

• Seeking buyers for the combined fluid management/oncology venous access business, as well as the cardiac surgery and vascular surgery businesses.

"The expense and head count reductions we are announcing today are intended to bring our expenses back in line with our revenues, while preserving our ability to make investments in quality, R&D, capital and our people that are essential to our long-term success," president and chief executive officer Jim Tobin said in the release.

"While difficult, these reductions are in the best interest of the company and will create greater value for our customers and their patients, as well as for our employees and shareholders."

Boston Scientific is a medical device company based in Natick, Mass.

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