Stryker plans to lay off 5% of its workforce ahead of the med-tech tax
Stryker Corp. announces plans to lay off 5 percent of its workforce, reducing operating cost by more than $100 million before the 2.3 percent med-tech levy takes effect in 2013
Stryker Corp. (NYSE:SYK) officials said the company plans to cut 5 percent of its workforce over concerns about the impending 2.3 percent medical device tax prescribed by President Barack Obama's health care overhaul.
The Kalamazoo, Mich.-based orthopedic device giant expects layoffs and restructuring efforts to reduce costs by more than $100 million before the tax takes effect in 2013.
Officials said the reductions should free up capital for strategic investments and growth "despite the ongoing challenging economic environment and market slowdown in elective procedures." according to a press release. Restructuring efforts will cost the company an estimated $150 million to $175 million, much of which will be recorded in Q4 2011 earnings.
Stryker CEO Stephen MacMillan has long been a vocal critic of the device tax, telling an industry lobby conference in September, "There is no doubt that we're already starting to t...
