On the heels of a 50 percent profit increase, medical device company Boston Scientific, which employs more than 5,000 people in Minnesota, announced a restructuring plan that would cut up to 1,400 jobs from its current workforce.
If cutting jobs when the company's doing well doesn't make sense, there's this: Boston Scientific also announced a new $150 million project in China, which will result in 1,000 new jobs over there. If you think they're doing well now, imagine how much money they'll make if they don't have to pay anyone a living wage!
In an audacious moment, CEO J. Raymond Elliott called the restructuring plan "great news for our employees."
Of course, the real great news came this morning, when the BSX stock market symbol shot up the charts -- as of 10:30 central time, Boston Scientific stock was up 9.4 percent today.
There's no indication on which locations will suffer the brunt of those 1,400 lost jobs. Boston Scientific has more than 5,000 employees at its offices in St. Paul, Maple Grove and Plymouth.
The news came in a press release, explained in that wonderfully subtle business language.
The Company anticipates the reduction of 1,200 to 1,400 positions worldwide through a combination of employee attrition and targeted headcount reductions as the program is implemented. Plans detailing specific employee impacts will be developed for each affected region and business, and the Company will consult in due course with relevant employee representative bodies, where required under local laws.Translation: A bunch of you are getting canned. We'll let you know.
Earlier this week, Boston Scientific announced second-quarter profits of $146 million, up 49 percent from last year's second quarter.
In the press release, J. Raymond Elliott described the layoffs and outsourcing as "a productivity-focused restructuring program and an additional investment in China, all of which are key steps on the path to achieving our goals."
He went on: "That's great news for our employees, shareholders and customers!"
Yes, it is! Except for those of you who Boston Scientific is "restructuring" out of a job!