Updated from 2:51 p.m. EDT
said Wednesday that it will reduce its workforce by about 8%, or roughly 1,000 jobs, and close some plants to improve productivity and reduce costs.
The company will stop manufacturing in Plymouth, Minn.; Redmond, Wash. and Watertown, Mass. Production from those plants, along with 900 jobs, will be transferred to facilities in Miami and Ireland.
Boston Scientific said it will take a $45 million charge this year to pay for the changes, which follow a management realignment in February. Analysts surveyed by
First Call/Thomson Financial
project that the company will earn $1.15 per share in 2000.
Boston Scientific shares rose on the news, finishing regular trading up 1 1/16, or 4.5%, at 24 7/8. The Natick, Mass.-based company makes medical devices used in minimally invasive surgeries. The company's stock has been pummeled over the last year, losing nearly half of its value since last July after product recalls and waning sales.
The announcement represents the company's "blueprint for achieving Boston Scientific's most important objectives," said Pete Nicholas, chairman of the board, in a statement.
"This plan arises out of a thoughtful and thorough analysis of the strategic needs of the company,'' Nicholas said. "Over the past several years, we have grown rapidly through acquisition and have become a truly global organization. The plan consolidates our operations and better allocates the company's resources in a way that allows us to more aggressively invest in innovation and prepare for future growth.''
Boston Scientific is trying to become more efficient and develop products more quickly to defend against its rivals, who have been making
inroads into its sales. The company makes stents, tiny metal mesh tubes used to hold arteries open after angioplasty to clear clogged blood vessels in the heart, and other medical devices.
Boston Scientific said the job cuts will result in savings of $70 million next year, $145 million in 2002 and $180 million annually later. The savings will be invested in research.
The company has about 13,000 employees.