Friday 24 October 2014

Boston cuts 'won't have significant effect' on Irish jobs

Published 31/01/2013 | 05:00

BOSTON Scientific has moved to play down fears of possible job losses at its Irish operation after the company said it would cut its workforce worldwide.

The medical devices maker said on Tuesday it would cut about 1,000 jobs across its business as it looks to sharply reduce its operating expenses.

Boston Scientific employs about 4,900 people in Ireland at sites in Galway, Cork, Clonmel in Co Tipperary and Letterkenny in Co Donegal.

The company wants to reduce operating expenses across its entire business.

A spokesman for the company said no decision had been made on where the layoffs would be but he emphasised the Irish operation's importance to the business overall.

"Management will now assess where these changes will happen. It is likely the underperforming units of the business will be targeted, but no decisions have been made in that regard.

Important

"In terms of the Irish business, we are acutely aware of the importance of our operations there to the company overall and that has not changed," he said.

The company ,said it was likely to look at other regions "more closely" than Ireland when it was deciding where to cut and that it was "highly unlikely" the operations here would be significantly affected.

Boston had announced that it would make the cuts after it posted sharply lower annual profits of about $60m (€45m), compared with $107m a year earlier.

Revenue dipped to $1.82bn from $1.85bn as sales slipped in the interventional cardiology business, which sells heart stents, and in the cardiac rhythm management business.

The company employs about 24,000 people worldwide.

Results are expected to improve as 2013 progresses, said chief executive Michael Mahoney. Subsequent easier comparisons, the introduction of new products and better execution would drive profit higher the rest of the year, Mr Mahoney added.

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