Stryker eliminates 160 jobs to cut costs ahead of med-tech tax

December 9, 2011 by MassDevice staff

Stryker (NYSE:SYK) is closing New York operations of subsidiary Gaymar Industries by the end of 2012, leaving 160 out of work in an effort to cut costs ahead of the medical device tax.

The layoffs are part of Stryker's plan to cut 5 percent of its global workforce over concerns about the impending 2.3 percent levy prescribed by President Barack Obama's health care overhaul, a Stryker spokeswoman told MassDevice.

Last month 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.

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Stryker will phase the jobs out over the next year as different production lines are shut down, the spokeswoman told MassDevice via email.

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

Stryker announced plans to acquire the ulcer management solutions and temperature control devices maker in August 2010 for $150 million in cash. The deal was the culmination of a 10-year relationship between the two companies, in which Gaymar manufactured products for Stryker on an OEM basis for sale in North America.

Shares of Stryker stock were up nearly 2 percent to $47.90 in early afternoon trading today.

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