Covidien Announces Restructuring

Covidien Ltd., one of the largest life sciences companies in Massachusetts, has unveiled a restructuring program to cut costs.

The health care products company said the program, slated to touch its four major business segments and corporate offices, will save $50 to $75 million annually, suggesting it plans to eliminate several hundred jobs around the world. Covidien said it will record a pre-tax charge of $200 million beginning in the first quarter of fiscal 2009 to pay for the cuts. The company declined to say how many, if any, jobs will be cut. A company spokesman, Bruce Farmer, said the company will provide more details of the expense cuts later.

“This initiative will enable us to continue investing for future growth and profitability,” said Covidien Chief Executive Richard J. Meelia said in a statement.

Covidien, which is incorporated in Bermuda but operates out of Mansfield, MA, has about 42,000 employees worldwide, including 2,000 in Massachusetts. Earlier this month, Covidien said it planned to seek more than $1 million in state and local tax breaks to help finance an expansion at its Mansfield headquarters, providing space for roughly additional 50 employees. Farmer, the Covidien spokesman, said the company plans to go forward with the Mansfield expansion.

SOURCE: The Boston Globe