July 27 (Reuters) – Boston Scientific’s board has approved a new company-wide restructuring plan aimed at cutting costs and to better position the company for future growth, the medical device maker said in a regulatory filing on Monday.
Here are some details:
• The company said the plan, approved on July 21, will involve supply chain optimization, moving some production between factories and changing how the organization is structured.
• The changes are expected to begin this year and be largely finished by the end of 2029.
• Boston Scientific said the restructuring will lead to some job losses, even as it continues hiring in areas where it is growing and shifting resources to meet global market demand.
• The company estimates the plan will cost between $700 million and $800 million before taxes, with $600 million to $700 million of that expected to be paid out in cash.
• In return, Boston Scientific expects to reduce its annual expenses by about $500 million once the changes are fully in place.
• Much of the money saved will be reinvested into growth initiatives, the company said.
• Boston is expected to post second-quarter results on July 29 with investor focus on the performance of its heart device portfolio.
(Reporting by Padmanabhan Ananthan in Bengaluru)
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