Smith & Nephew Reduces Workforce (Memphis Daily News)
Smith & Nephew eliminated nearly 100 jobs in Memphis and Andover, Mass., on Thursday, Jan. 31, as the medical device company cuts expenses in an effort to offset tax hikes included in the Affordable Care Act.
The Affordable Care Act includes a 2.3 percent medical device tax, which took effect Jan. 1.
The London-based company, which employs about 1,800 people in Memphis, said the new tax will cost the industry about $30 billion over 10 years.
“(The tax) has impacted a number of companies across the U.S.,” said Joe Metzger, senior vice president of corporate communications. “Smith & Nephew is not immune from this added expense burden.”
Smith & Nephew announced in February 2012 that it would reduce its global workforce by 7 percent over the next three years. Several other companies announced similar plans, including Stryker and Medtronic.
Metzger would not comment on the exact number of jobs lost in Memphis, but sources familiar with the job cuts say it included about 60 Memphis employees.
“Unfortunately, and in order to absorb this cost burden into our business, this has meant less than 100 positions have been made...
