Report: Boston Scientific Cut 500 MN Jobs in August
Roughly a week after Boston Scientific Corporation announced plans to eliminate 900 to 1,000 positions worldwide in 2013, a state record indicating that the major local employer cut 500 Minnesota jobs back in August is getting some attention.
The 500-job figure was included in a report produced by the Minnesota Department of Employment and Economic Development—and it gives the first and only indication to date about how the Natick, Massachusetts-based company’s ongoing restructuring is affecting its local work force.
Boston Scientific employs about 5,000 in Minnesota at offices in Maple Grove, Plymouth, and Arden Hills, a company spokeswoman told Twin Cities Business last week. Meanwhile, the company employs about 24,000 worldwide.
The med-tech giant’s restructuring process began in 2011. Including the cuts announced last week, the company expects to eliminate between 2,100 and 2,400 positions between 2011 and 2013, according to a filing with the U.S. Securities and Exchange Commission. The company hasn’t revealed how many of the job cuts will be in Minnesota.
Last week, when asked how the just-announced round of cuts will affect Boston Scientific’s Minnesota work force and which types of jobs will be eliminated, a spokeswoman said in an e-mail that “those plans have not yet been finalized.”
Boston Scientific announced its latest restructuring plans in conjunction with the release of its fourth-quarter and full-year 2012 financial results.
For the fourth quarter, which ended December 31, the company reported sales of $1.82 billion, down 1 percent from the same period a year ago. Earnings, meanwhile, totaled $60 million, or 4 cents per share—dropping 44 percent from $107 million, or 7 cents per share, during last year’s fourth quarter.
Excluding charges related to restructuring, acquisitions, litigation, and other activities, net income totaled $252 million, or 18 cents per share.
Although Boston Scientific isn’t based in Minnesota, two of its largest rivals are: Fridley-based Medtronic, Inc., and Little Canada-based St. Jude Medical, Inc.—both of which also cut jobs last year.