Cyberonics to Cut 12% of Its Staff

Cyberonics, a maker of medical devices, said on Wednesday that it would cut 12 percent of its staff to reduce costs. Houston-based Cyberonics, Inc. (up $0.40 to $16.50, Charts) did not specify the number of workers who would be losing their jobs. As of April 4, 2007 the company reportedly had 547 employees. Cyberonics chief executive Dan Moore said, in a press release, that the company had to reduce costs because the Centers for Medicare and Medicaid Services recently decided not to cover the Cyberonics’ VNS Therapy Systems, a non-drug treatment for depression. The company said the $2.5 million in costs associated with the job cuts would be expensed in the second quarter of fiscal year 2008. SOURCE: CNNMoney.com