Boston Scientific plans $1B stock buyback, up to 1,400 job cuts
Just one day after announcing plans to invest heavily in China, Boston Scientific Corp. has won approval from its board to buy back $1 billion worth of common stock. The news comes as the company revealed in its second-quarter earnings report that it will cut between 1,200 and 1,400 jobs through layoffs and attrition.
Boston Scientific did not outline the specific areas targeted for job restructuring, but it estimated a minimum of $225 million, pre-tax, could be saved annually after 2013 due to the reductions.
The board of directors for the Natick-based medical device giant also re-approved the 37 million shares still left to buy back under an existing repurchase program. Boston Scientific (NYSE: BSX) president and CEO Ray Elliott said in a release that the company has reduced its debt to $4.2 billion and that the buyback program will give the company “added flexibility in our commitment to delivering value to shareholders.”