July 27 (Reuters) - Boston Scientific's BSX.N board has approved a new company-wide restructuring plan aimed at cutting costs and to better position the company for future growth, the medical device maker said in a regulatory filing on Monday.
Here are some details:
- The company said the plan, approved on July 21, will involve supply chain optimization, moving some production between factories and changing how the organization is structured.
- The changes are expected to begin this year and be largely finished by the end of 2029.
- Boston Scientific said the restructuring will lead to some job losses, even as it continues hiring in areas where it is growing and shifting resources to meet global market demand.
- The company estimates the plan will cost between $700 million and $800 million before taxes, with $600 million to $700 million of that expected to be paid out in cash.
- In return, Boston Scientific expects to reduce its annual expenses by about $500 million once the changes are fully in place.
- Much of the money saved will be reinvested into growth initiatives, the company said.
- Boston is expected to post second-quarter results on July 29 with investor focus on the performance of its heart device portfolio.
