Boston Scientific unveils new restructuring plan, expects job cuts

July 27 (Reuters) – Boston Scientific’s board of directors has approved a new companywide restructuring plan “aimed at reducing costs and better positioning the company for future growth,” it said in a regulatory filing on Monday.

Here are some details:

• The plan, approved July 21, will include supply chain optimization, moving some production between factories and changing the structure of the organization, the company said.

• The changes are expected to begin this year and be substantially completed by the end of 2029.

• Boston Scientific said the restructuring will result in some job losses even as it continues to hire in regions where it grows and shifts resources to meet global market demand.

• The company estimates the plan will cost between $700 million and $800 million before taxes, of which $600 million to $700 million is expected to be paid in cash.

• In comparison, Boston Scientific expects to reduce its annual expenses by approximately $500 million once the changes are fully implemented.

• The majority of the money saved will be reinvested in growth initiatives, the company said.

• Boston is expected to report second-quarter results on July 29, when investors will focus on the performance of its heart device portfolio.

(Reporting by Padmanabhan Ananthan in Bengaluru)