The second largest heart device company, Boston Scientific is cutting up to 1500 positions as it re-organizes Bloomberg reported Thursday.
"The program is intended to build on the progress the company has made to address financial pressures in a changing global marketplace, further strengthen its operational effectiveness and efficiency and support new growth investments," the company said in a statement Wednesday when documenting its plans with the United States Securities and Exchange Commission.
The news is the company's latest development since it unveiled its re-structuring plans in 2011. The company formally proclaimed these in January, when the company said it was cutting 1,000 positions this year, from 2012's total of 24,000, in order retain $100 million to $115 million a year Bloomberg reported.
The cuts will be spread out through 2015, and are aimed at assisting the company reduce operating expenses $150 million to $200 million, before taxes.
The company will use $175 million to $225 million of money collected from fees to institute its changes. A $30 million charge will also be used in the fourth fiscal quarter.
"With continued cost cutting and share buyback, coupled with new pipeline launches, we believe that the company can deliver mid-teens earnings per share growth, which is above industry average," Glenn Novarro, an analyst with RBC Capital Markets, in an Oct. 21 memo to his clients Bloomberg reported.
The company's shares in the third fiscal quarter decreased to $5 million or less than a penny from $664 million or 48 cents the year prior when it invested $809 million for the company's cardiac rhythm management unit.
Thursday morning numbers, however, showed Boston Scientific's shares increased 2.5 percent to $12.60.
The company expects to make 69 to 71 cents a share for the year, which will increase its final bottom end two cents.
