St. Jude Medical restructures, eliminates 300 jobs
Global medical device company St. Jude Medical, Inc. announced last week that it is realigning its product divisions. The reorganization will result in the loss of roughly 300 jobs.
The company is creating two new operating units: the Implantable Electronic Systems Division and the Cardiovascular and Ablation Technologies Division. The company will also centralize several support functions, including information technology, human resources, legal, business development and many marketing functions.
Streamlining their business structure is a prime goal of the company’s reorganization strategy, according to spokesperson Amy Jo Meyer.
“The centralization of key support functions further simplifies the business and contributes to lower costs,” Meyer told Healthcare Finance News. “The new organization will allow the company to more efficiently and effectively develop clinically significant medical device solutions that drive economic value.”
The company estimates that as a result of the organizational changes, it will be able to reduce pre-tax operating expenses by approximately $50-$60 million annually beginning in 2013.
"The reorganization is part of a comprehensive plan to accelerate our growth," said Daniel J. Starks, chairman, president and chief executive officer of St. Jude Medical, in a press release. "We are focused on reducing costs, leveraging economies of scale, maintaining the highest level of quality and funding our entire portfolio of new growth drivers."
The company said in the press release that support is being provided to the approximately 300 employees whose jobs have been eliminated.
