Covidien says it plans to consolidate its manufacturing and distribution operations as part of a global restructuring aimed at saving up to $300 million a year.
Covidien (NYSE:COV) said its board of directors authorized a restructuring plan aimed at saving up to $300 million a year by fiscal 2018, with manufacturing and distribution operations slated to be closed. Covidien did not reveal how many layoffs would be involved.
Mansfield, Mass.-based Covidien said the restructuring, "developed to continue to drive efficiencies and improve the company's cost structure," will include several elements aimed at "creating efficiencies," according to a regulatory filing.
"The plan will focus on creating efficiencies by, among other things, reducing corporate expense, expanding the use of shared services in low-cost locations, outsourcing services where appropriate, streamlining the Company's organizational structure, consolidating manufacturing locations, consolidating and optimizing distribution centers and expanding low-cost country sourcing," according to the filing.