Stryker Slashes Jobs

Stryker plans to reduce its global workforce by approximately 5 percent among other restructuring activities to reduce annual pre-tax operating costs, according to a Stryker news release.

The company plans to reduce the pre-tax operating costs by more than $100 million beginning in 2013. The restructuring is designed to provide efficiencies and realign resources before the new Medical Device Excise Tax begins in 2013. The strategy will allow for continued investment and growth in some areas of the company, despite a decrease in elective procedures, according to the release.

The restructuring and workforce reduction will be mostly complete by the end of 2012, and employees who are affected by the reductions will receive severance packages, counseling and job placement services. The company expects to record $85 million to $95 million in pre-tax restructuring charges in the fourth quarter of 2011.