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Boston Scientific to restructure, taking up to $800M in charges
MedTech Dive • • business
Key Points:
- Boston Scientific announced a global restructuring plan involving supply chain and organizational changes, expecting some headcount reductions but continuing to hire in growth areas; the total pre-tax charges are estimated between $700 million and $800 million.
- The restructuring, approved by the board, aims to improve cost efficiencies and align resources with strategic priorities, with completion targeted by the end of 2029.
- The company plans to reduce gross pre-tax expenses by about $500 million, reinvesting some savings into growth initiatives, with costs including manufacturing line transfers, termination benefits, and contract cancellations.
- Recent setbacks in key franchises like electrophysiology and Watchman, along with increased competition, prompted the restructuring; Boston Scientific lowered its earnings and sales growth forecasts earlier in the year.
- This follows previous restructuring efforts in 2023 and 2024, which involved job cuts and facility closures after acquisitions such as Preventice Solutions and Silk Road Medical.
