SEARCH
Current Location:
>
> This Story


Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

Never Miss a Story

Sign up for email alerts

 

More Industry Headlines

Hard numbers from 20 year study oppose treating unaggressive prostate cancer Of 1,298 senior men only two died of the disease, three had metastases

Can Oklahoma CT scanner unlock the shrouded secrets of two ancient mummies? As imaging technology improves, the past comes into focus

GE's new ventilator may save hospital $5 million annually Nutritional assessment software brings personalized medicine to ICU

International brain cancer consortium takes aim at better linear accelerator outcomes Elekta to fund group with hopes of closing clinical evidence gaps

All-in-one imaging ISO 4med to adjust business strategy Consulting division will segregate into new company

Cardiac ultrasound comes to Argentinian jungle population via ASEF, FAC and Philips Mission provides screening for 653 individuals

This month in Medical History - The cure for venereal disease From the August issue of HCB News magazine

Using fMRI to inform antipsychotic prescriptions Indexing connectivity patterns may lead to psychiatric precision medicine

fMRI reveals adolescents may not outgrow ADHD in adulthood after all What role do brain structure and memory function play?

Among critically ill, study finds probiotics useless against 'superbugs' More research to come, with focus on non-ICU subjects

Stryker to lay off 5% of workforce

by Brendon Nafziger , DOTmed News Associate Editor
Stryker said Thursday it was laying off 5 percent of its global workforce, in a move analysts say could help soften the earnings hit from a coming medical device manufacturers tax.

The Kalamazoo, Mich.-based maker of surgical and orthopedic equipment said the layoffs were part of a restructuring move that would help shave $100 million off yearly pre-tax operating costs, starting in 2013. Stryker expects most of the layoffs and restructuring activities to be wrapped up by the end of next year. Affected employees would receive severance packages, counseling and job placement services, Stryker said.

Story Continues Below Advertisement

Ventilators Plus-The Easy #1 Choice In Ventilator Sales, Rentals & Support.

Our name says it all! Ventilators Plus is a full service depot repair facility offering on-site service as well we BUY,SELL & RENT all models & also have a FULLY STOCKED parts warehouse available online 24/7.Call 888-889-2992



Reuters estimates the company will cut about 1,000 workers.

The company expects $150 million to $175 million in restructuring charges, of which it will record $85 million to $95 million in the fourth quarter.

The announcement comes as medical device makers brace themselves for a 2.3 percent excise tax, called for on the industry by the Affordable Care Act. The tax is set to take effect in 2013.

"Assuming (Stryker's) restructuring initiative can achieve management's anticipated ~$100M annual savings target starting in 2013, this could -- all else held equal -- at least partially neutralize the Med Devices Tax hit to (earnings per share)," Rick Wise, an analyst with the health care investment bank Leerink Swann, said in a note to investors Friday. Earlier, he said they estimated the company would take a nearly 23 cent EPS hit from the tax.

"These initiatives reinforce our view that (Stryker) remains one of the better positioned companies in our universe to deliver above-average EPS growth over time," Wise said.

Earlier this fall, the Advanced Medical Technology Association (AdvaMed), a trade lobby, released a study warning that the medical device tax could lead to the loss of 43,000 U.S. jobs.



Related:


Interested in Medical Industry News? Subscribe to DOTmed's weekly news email and always be informed. Click here, it takes just 30 seconds.
(28)

Brian Tunell

Creating Jobs

November 17, 2011 11:26

This is called "Creating Jobs the Obama way." It's proof that you can not tax your way to prosperity. It only continues to grow an already bloated and unsustainable government.

Log inor Register

to rate and post a comment

You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2015 DOTmed.com, Inc.
ALL RIGHTS RESERVED