Stryker to begin New York layoffs ahead of the medical device tax | Wall Street Beat

June 25, 2012 by MassDevice staff

Stryker's plans to cut more than 100 jobs by closing 2 New York manufacturing facilities will begin in September and continue on a rolling basis until the end of the year, just ahead of implementation of the 2.3% medical device tax.

MassDevice.com Wall Street Beat

Stryker (NYSE:SYK) is making good on plans to cut more than 100 positions by closing 2 New York manufacturing plants, moves that the company previously attributed to attempts to cut costs ahead of the coming 2.3% medical device tax.

The device maker will shutter 2 plants used by subsidiary Gaymar Industries by the end of 2012, leaving 107 out of work, according to a "WARN" notice filed with the state.

Stryker previously announced the layoffs as part of its larger effort to reduce its worldwide workforce by about 5% in order to cut costs ahead of the federal levy, which takes effect Jan. 1, 2013.

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The closings will affect 11 positions at the company's West Seneca plant and another 96 at the facility in Orchard Park, according to the notice.

The layoffs are set to begin on a rolling basis beginning September 21 and both plants will close officially by the end of the year.

Late last year the Kalamazoo, Mich.-based orthopedic device giant announced layoffs and restructuring efforts to reduce costs by more than $100 million before the tax takes effect in 2013.

Gaymar, founded in 1956, has a third office in Puerto Rico that will remain open. The company didn't expect an impact on service or delivery operations.

Stryker representatives were not available for comment.

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