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

New technology can spot tiny strains in body tissues before injuries happen Imaging technology needs to get up to speed first

ACR calls for virtual colonoscopy coverage Coverage of fecal DNA testing set new precedent

First organ grown in animal using lab-created cells May be the foundation for thymus transplant treatment

Report suggests slow progress integrating electronic records with useful analytics Hospitals and vendors alike struggle to aggregate meaningful data

August's New Product Showcase This month's roundup of the latest industry products.

Video game console improves MS patients' balance MR shows changes in their brains

Simplified EHR alerts reduce hospital-acquired UTI infections Underscores need for simpler alerts

Medical imaging technology industry brings benefits to Washington Propels their economy and job market

Global laparoscopy device market will hit $12.3 billion Advances in ease of use and ergonomics

3-D printers can create custom medical implants Making drug therapy more personal

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

Click to see a vision of improved quality of care in the OR

A mobile C-arm with low power can cause a unit to overheat, leaving your team waiting as valuable minutes tick by. Click to learn about the new Cios Alpha - delivering the most powerful generator available in a mobile C-arm



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

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 ©2001-2014 DOTmed.com, Inc.
ALL RIGHTS RESERVED