Acquired for $1.2 billion by Philips ($PHG), cardiovascular imaging specialist Volcano sent out a reassurance that it will maintain a presence in Rancho Cordova, CA, even after it terminates manufacturing at the facility at the cost of 60 jobs, on the heels of cuts in 2014 and 2013.
About 250 employees will work on design, engineering, customer support and services operations, a Philips spokesman said, according to the Sacramento Business Journal.
Volcano was founded in Rancho Cordova in 2001, but moved its headquarters to San Diego about a decade ago.
The company notified the state last week about its plan to lay off 60 employees in Rancho Cordova by Feb. 2. It has been moving manufacturing of intravascular imaging devices and disposable catheters to Costa Rica, as evidenced by the declining employment in Rancho Cordova, where 700 employees once worked.
The Sacramento Business Journal reports that the company laid off 240 workers at the site in 2013, and an additional 170 in 2014.
At the time of its takeover by Philips in February 2015, the company had about 1,800 employees. In an interview with FierceMedicalDevices, Philips CEO Frans van Houten said the company's areas of focus are care coordination in healthcare, linking analytics to image acquisition and "what we call the minimally invasive treatment, areas where we have the example of our Volcano acquisition that makes us the strongest player in the cath lab."
In October, the company sold optical technology provider Axsun Technologies, which had been part of Volcano, to venture capital firm Anzu Partners for an undisclosed sum.
Last year, Philips announced that it would split into two companies, one focused on healthcare and consumer lifestyle products and the other devoted to its lighting business. The separation is expected to occur in first half of 2016.
- read the article in the Sacramento Business Journal