Boston Scientific will cut up to 1,400 jobs by the end of 2013 to save $275 million, the company revealed in its second quarter earnings report. The cuts will be achieved through a combination of employee attrition and targeted headcount reductions. Some of the money saved will be re-invested in areas the company is eyeing for future growth, such as emerging markets. The 25,000-person company added that it plans to create 1,000 new jobs in China over the next 5 years as part of a $150 million expansion in that country.
The medical devicemaker's sales totaled $1.975 billion in the second quarter. Its reported earnings of $0.10 per share represented a 66% increase over the second quarter of 2010. And its adjusted earnings per share of $0.17 was a 42% increase over the second quarter last year. Both beat the company's previous guidance.
The company also reduced its gross debt to $4.2 billion by prepaying the remaining $750 million of term loan borrowings during the quarter. Boston Scientific also announced its intention to buy back $1 billion in shares. "This repurchase program reflects our confidence in the strength of the company's long-term business prospects, earnings growth potential and our ability to generate strong cash flow," said outgoing CEO Ray Elliott in a statement.
- check out the Boston Sci earnings release
- get the share buyback release
- read the Bloomberg article for more