Stryker to Cut New York Jobs (Orthopedics This Week)
According to a “WARN” notice filed with the state of New York, Stryker Corporation will close two plants used by its subsidiary, Gaymar Industries, by the end of 2012.
The closings, due to begin in September, will result in cutting 107 jobs. Eleven positions will be eliminated at the company’s West Seneca plant and another 96 at a facility in Orchard Park. A third office in Puerto Rico will remain open. No impact on service or delivery of operations was expected by the company.
MassDevice reported on June 25 that the Styker previously announced the layoffs as part of the company’s larger effort to save more than $100 million by reducing its worldwide workforce by about 5% in order to cut costs ahead of upcoming 2.3% medical device tax which takes effect in January 2013.
Stryker acquired Gaymar in 2010 for approximately $150 million in all-cash transaction.
Gaymar, founded in 1965, specializes in support surface and pressure ulcer management solutions as well as targeting the temperature management segment of the healthcare industry, with a portfolio of capital and disposable products in both the U.S. and international markets.
At the time of the purchase, then CEO Stephen MacMillan said Gaymar’s portfolio of high-performance support surface and pressure ulcer management products target an approximately $1.8 billion worldwide market.
Before the acquisition, Stryker’s Medical division and Gaymar had had a 10-year original equipment manufacturer (OEM) relationship whereby Gaymar provided Stryker with exclusive rights to sell support surface and pressure ulcer management products to acute care customers in North America. Gaymar achieved sales of approximately $77 million in 2009, of which approximately $14 million were related to the existing OEM relationship with Stryker.