Boston Scientific Restructures Operations, Plans Workforce Cuts

Boston Scientific has filed a Securities & Exchange Commission (SEC) Form 8-K describing a restructuring plan, for which it expects to make headcount reductions.

The Marlborough, Mass.-based company’s new global restructuring plan was approved by its board of directors on July 21. The plan hopes to support sustained cost efficiencies and allow continued growth by aligning its structure and resources to support strategic priorities.

According to the SEC document, Boston Scientific anticipates removing personnel as a result of its restructuring efforts.

“While new jobs are created in areas of growth and resources are deployed to support the Company’s portfolio and global market needs, the Company does expect some headcount reductions to result from these restructuring activities,” the company reported.

The activities are planned to begin this year and be substantially completed by 2029. Boston Scientific said other restructuring efforts will target supply chain optimization, which includes transferring certain production lines among facilities, as well as targeted functional transformation and organizational structure evolution.

The company expects implementing this plan to cost about $700-800 million in total pre-tax charges. $600-700 million of that is expected to result in future outlays. This should cut gross annual pre-tax expenses by about $500 million as the program’s benefits manifest. Savings will be reinvested in strategic growth initiatives.

This cost-cutting measure follows two acquisitions that Boston Scientific initiated at the year’s beginning: mechanical thrombectomy product maker Penumbra for $14.5 billion and urinary incontinence device maker Valencia Technologies for an undisclosed sum.

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