Savings Through Consolidation Most companies experience growing pains, trimming costs every now a

Savings Through Consolidation

Most companies experience growing pains, trimming costs every now and then to save money and operate more efficiently. But medical device OEMs seemed to trim more “fat” than usual this year to offset sluggish sales and conserve cash. Boston Scientific Corp. and Medtronic Inc. each pruned more than 1,000 jobs from their payrolls as pricing pressures and nominal market growth took a toll on revenue. Even an 11 percent jump in fiscal third-quarter earnings couldn’t rescue the 1,500- 2,000 jobs on Medtronic’s chopping block. Nearly as many positions (1,400) are endangered at BSX, where executives have been working over the last two years to transform the company into a stronger, leaner, more competitive firm. Such improvements, though, rarely occur without sacrifice, and Boston Scientific has sacrificed at least 2,400 employees to date in pursuit of its reinvention.

Other companies making notable staff sacrifices this year included Biomet Inc., which cut up to 200 jobs amid a reorganization of its global reconstructive business. Most of the layoffs occurred in Europe; only 21 took place within the United States.

Workers at Stryker Corp. and Wright Medical Technology Inc. are getting a brief reprieve from the sacrifices they eventually will make for their respective companies. Stryker is eliminating 142 jobs over the next two years in Ireland (thanks to a consolidation of factories in Carrigtwohill), while Wright Medical’s cost restructuring plan calls for handing out pink slips to 6 percent of its workforce, or 80 employees.

Smith and Nephew plc underwent a consolidation as well over the summer, but the merger of its Memphis, Tenn.-based orthopedic unit and its endoscopy division in Andover, Mass., did not result in any layoffs. At least not yet.