Key Takeaways:
- Boston Scientific expects $700M to $800M in pre-tax restructuring charges
- The plan targets $500 million in annual expense reductions by 2029
- Job cuts will occur as the company pursues its $14.5 billion Penumbra acquisition
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Boston Scientific to cut $700M in costs under restructuring plan
Boston Scientific will eliminate jobs and streamline supply chains in a restructuring expected to save $500 million annually.
Boston Scientific expects to cut about $500 million in annual expenses through a restructuring that includes job reductions and supply-chain consolidation, the medical device maker said Monday.
"While new jobs are created in areas of growth and resources are deployed to support the company's portfolio and global market needs, the company does expect some headcount reductions to result from these restructuring activities," Boston Scientific said in a Securities and Exchange Commission filing.
The company expects pre-tax charges of $700 million to $800 million, with $600 million to $700 million resulting in future cash outlays. Termination benefits will account for $275 million to $300 million of the total. The plan includes transferring production lines among facilities, targeted functional transformation and organizational structure evolution.
The restructuring comes as Boston Scientific pursues its largest-ever acquisition — a $14.5 billion deal for Penumbra, a neurovascular and stroke-treatment company — and follows the completed purchase of Valencia Technologies in April for an undisclosed amount. The cost-cutting program is expected to launch this year and be substantially completed by the end of 2029.
The company did not disclose how many positions would be affected or where those reductions would occur. Previous cuts include 120 jobs in Texas and 52 jobs in California in 2023, according to WARN notices and company disclosures.
Boston Scientific's restructuring mirrors broader cost discipline across the medical device sector. Medtronic, the world's largest pure-play medical device company, has pursued multiple restructuring rounds since 2023, while Abbott Laboratories has focused on supply-chain efficiency. The moves reflect an industry balancing margin pressure from hospital customers against the need to fund research and development pipelines.
The $700 million to $800 million in expected charges represents roughly 7 percent of Boston Scientific's $11.2 billion in revenue for fiscal 2025. The company trades on the New York Stock Exchange under the ticker BSX.
This article is for informational purposes only and does not constitute investment advice.
