Hologic's effort to cut costs by slimming down its staff came at a price this year. The Bedford, MA-based diagnostics giant ($HOLX) was hit with $51.7 million in restructuring charges in 2014, according to a regulatory filing.
The charges are related to a number of "cost containment measures" Hologic took in 2013 and 2014--mostly headcount reductions. Specifically, Hologic laid off employees at its Hitec Imaging operation in Germany and cut certain executives and workers at other locations as a result of management changes.
The $51.7 million in charges mostly reflects severance and benefits paid to the laid-off employees, according to the company.
In fiscal 2013, Hologic said it recorded charges of $32.8 million, also related to job cuts.
Those charges may have been a hit to the wallet in the short term, but they're meant to save Hologic money in the long run. Still, its bottom line wasn't hurt by the charges. Just last month Hologic said that its revenues for fiscal 2014, which ended on Sept. 27, were up almost 2% to $2.53 billion.
In fact, the news reflects the company's plan for growth. Just this month, Hologic launched the next-generation NovaSure global endometrial ablation (GEA) system, designed to treat women with abnormal uterine bleeding or heavy periods.
In June, the company was also the recipient of a $32 million, 5-year federal contract to supply the Department of Defense with ThinPrep pap test kits and related supplies, for which Hologic is the sole supplier.
- see the SEC filing