Welch Allyn Announces Job Cuts, Restructuring Plans

Welch Allyn has joined the ranks of the likes of medical device companies such as Stryker Corp. and Zimmer Holdings Inc. that have cut jobs in anticipation of the 2.3 percent medical device excise tax set to begin in January. The Skaneateles Falls, N.Y.-based medical device manufacturer announced it will cut 275 jobs, or 10 percent of its global workforce.

“We firmly believe this restructuring program is the right thing to do for the long-term success of the business, however, we also fully recognize the hardship it will cause some of our colleagues in the short term,” explained Welch Allyn CEO Steve Meyer. “Welch Allyn recognizes the value of an educated workforce to our community and our economy. The company will reimburse up to $4,000 of the cost of education for the successful completion of coursework through an accredited institution of higher learning and/or for the successful achievement of a professional certification designation offered by a recognized organization. We will make this benefit available to these employees for up to 12 months post-departure.”

On the day of the announcement—Sept. 10—45 workers were informed they would lose their jobs at the company’s headquarters. CEO Steve Meyer said the cuts had to do with “turmoil in the U.S. market,” and the company’s goals to reshape its business, expanding into emerging global markets. The changes are needed to “really get Welch Allyn able to compete on a global scale,” he said.

Over the next three years, the company plans to establish three new product development and technology centers in Skaneateles Falls, Beaverton, Ore., and Singapore. It also intends to create a global finance shared service center in Tijuana, Mexico, and consolidate its North American manufacturing and related support functions at its largest facilities in Skaneateles Falls and Tijuana, Mexico.

The company also will perform a 90-day evaluation of its European operations to determine the optimal deployment of the business in that important market, and reorganize its Latin America business to be more competitive in the region.

“This restructuring plan will help us maintain competitive levels of investment in new products and technologies that are necessary to meet the changing needs of the global healthcare environment,” said Meyer. He noted that Welch Allyn’s global headquarters in Skaneateles Falls will continue its evolution into a high technology center, capitalizing on demand for the company’s digitally-enabled patient vital signs monitoring systems and diagnostic cardiology product offerings in addition to its traditional core opto-electronic product categories. In doing so, the facility will absorb the patient monitoring systems and low acuity vital signs product manufacturing operations from its Beaverton facility, while the company’s Tijuana operations will absorb additional thermometer probe cover, lamp and some blood pressure cuff manufacturing operations from Skaneateles Falls.

“Our plan is well thought out and tied to the rapidly changing healthcare market, and in keeping with our history of making sure we treat our employees fairly and with the highest level of respect. We are confident we will emerge from this restructuring stronger than ever,” added Meyer.

Welch Allyn has been in operation for almost 100 years, having been founded in 1915.

Photo of Steve Meyer courtesy of Stephen D. Cannerelli of The Post Standard.