Stryker Corp. to complete planned layoffs of 1,000 workers by end of 2012 (Michigan Live)
Stryker Corp.’s planned layoffs of 5 percent of its global workforce are on track to be completed by the end of 2012.
Over the weekend, news reports put the total number of layoffs at 1,170, but Tamara Cutler, vice president of public affairs, said in an email that figure was inaccurate.
“The estimated 5 percent workforce reduction was announced in Nov. 2011 and at that time, we had approximately 20,000 global employees, so the 5 percent was estimated to be about 1,000 employees,” wrote Cutler.
“The reductions are still expected to be complete by the end of 2012,” added Cutler.
The Kalamazoo-based medical device maker first announced the layoffs in November 2011 to “provide efficiencies and realign resources in advance of the new Medical Device Excise Tax scheduled to begin in 2013,” a press release said at the time, “as well as to allow for continued investment in strategic areas and drive growth despite the ongoing challenging economic environment and market slowdown in elective procedures.”
In one sign that challenging environment continues, Stryker just missed Wall Street earnings forecasts in the third quarter with adjusted earnings per share of 97 cents per share.
The new Medical Device Excise Tax, enacted in 2010 as part of the Patient Protection and Affordable Care Act, imposes a 2.3 percent tax on medical device manufacturers like Stryker. Previous estimates say it could cost the industry $20 billion.
Stryker declined to provide the locations of the layoffs or whether any would be concentrated in Kalamazoo.
Based on a previously reported Worker Adjustment and Retraining Notification (WARN) notice issued in June, 107 of the jobs were located in two plants in Orchard Park and West Seneca, N.Y., that were slated to be closed by Stryker. The WARN Act requires employers with more than 100 employees to provide 60 days’ notice in advance of mass layoffs or plant closings.
No WARN notices had been issued in Michigan for the medical device maker as of Nov. 19.
Yvonne Zipp is a business reporter for the Kalamazoo Gazette. You can reach her atyzipp@mlive.com or 269-365-8639.