Boston Scientific to Lay Off Up to 1,300

Boston Scientific Corp. will lay off 1,000 to 1,300 employees and has made a series of management changes as part of a restructuring plan to cut costs, according to the medical device giant. Those let go will receive severance packages, according to the firm.

The company, based in Natick, Mass., said it has created restructuring initiatives designed to improve its effectiveness and efficiency. Gross expenses are expected to be reduced by $200 million to $250 million (5 to 7 percent) during the next two years, the company said.

“The actions we are announcing…will provide the organizational structure and leadership needed to execute our strategic plan and fulfill the enormous promise of this company,” said Ray Elliott, president and CEO. “They are aimed at driving innovation, accelerating profitable growth and increasing both accountability and shareholder value. Above all else, they will help us better serve our customers and their patients.”

Key management changes include:

Hank Hucheman has been promoted to executive vice president and president of the new Cardiology, Rhythm and Vascular Group. The Cardiovascular Group and Cardiac Rhythm Management Group will be combined. Kucheman most recently served as president of the Cardiovascular Group.

Fred Colen has been promoted to executive vice president and chief technology officer. Under Colen’s leadership, the company will change its allocation of research and development resources to create technology centers of excellence, drive improved product development timing and efficiency and expand new product opportunities. Colen most recently served as president of the Cardiac Rhythm Management Group, according to the firm.

Key restructuring initiatives include:

The company’s international headquarters will be eliminated.The presidents of Japan, Europe and the newly formed Emerging Markets Group will report directly to the CEO. The Emerging Markets Group, composed primarily of India, China, Brazil, Russia, Eastern Europe and parts of the Middle East, Asia and Latin America, will pursue selective offshore manufacturing, research, a variety of support services and individual country growth vehicles, Boston Scientific said.

The Endoscopy division and new Urology and Women’s Health division will each report to the CEO, and the Endosurgery Group structure, which currently oversees the Endoscopy and Urology/Gynecology divisions, will no longer exist. The newly named Urology and Women’s Health division, led by new Senior Vice President and Executive Committee member John Pedersen, plans to increase investment in its franchise in order to more aggressively pursue the substantial opportunities for device-related solutions for unmet women’s health needs., the company said.

The Endoscopy division, led by new Senior Vice President and Executive Committee member Michael Phalen will pursue incremental growth through devices for endoluminal surgery, obesity/diabetes solutions and pulmonary asthma, the company said.

Steve Moreci, currently Endosurgery Group president, will lead a newly created team devoted to global sales.

The company also announced the following management changes:

Sam Leno will be promoted to executive vice president and chief operations officer, effective March 1.

Jeff Capello will be promoted to executive vice president and chief financial Officer, effective March 1.

Tim Pratt has been promoted to executive vice president and chief administrative officer.

Jean Lance has been promoted to senior vice president and chief compliance Officer.

Dan Brennan has been promoted to senior vice president and corporate controller.

Larry Neumann has been promoted to senior vice president of restructuring and integration. Neumann will oversee and be accountable for all the company’s restructuring and integration activities.

Andy Milani has recently been named senior vice president of human resources.

“These changes were, in part, designed to allow me to spend more time with our operating divisions and international regions, as we place greater emphasis on stimulating sales growth, assessing our business portfolio opportunities and expanding operating profit margins,” said Elliott.