Abbott Vascular, which is in the middle of a restructuring plan aimed at streamlining operations and improvinge earnings, revealed the closing of the Houston-area facility in a Sept. 17 Workforce Adjustment and Retraining Notification Act filing.
Santa Clara, Calif.-based Abbott is moving the jobs to Temecula, near San Diego, after picking up the Webster facility last year via its $310 million acquisition of Idev Technologies and its peripheral device portfolio, the Houston Business Journal reported.
Abbott Labs is restructuring its vascular, nutrition and diagnostics units, expecting to an record $80 million charge this year for severance and other 1-time expenses. Abbott Vascular has been dealing with a decline in sales of its line of drug-eluting stents in part due to market-share losses, while recording an improvement in the Supera line of stents used in peripheral blood vessels it acquired from Idev.
“It was clear to the entire organization that our … [operating costs] in particular were higher than they should have been and we’ve been working very hard to address that through process improvements in the back office," CFO Thomas Freyman said during a July conference call with investment analysts. "I wouldn’t say we’re done; we still have a few things we want to do. What we have not been doing is tuning back on … things that really drive sales and growth. We’ve tried very hard to sustain and even increase investment in those areas."