The medical device industry had a lot of big stories during the last year, including tales of recalls, lawsuits and CEO swapping, but the single factor that drove more big headlines than any other was news of layoffs.
Some of the biggest companies in the industry announced significant cuts in 2012, amounting to about 7,000 reported layoffs, by some estimates.
Whether a result of restructuring, post-acquisition workforce cuts or attempts to cut costs ahead of the medical device tax, layoffs were a constant reminder that the industry was amid upheaval.
Check out MassDevice.com’s collection of some of the biggest of the big layoff stories of 2012:
Abbott announced that it would cut 700 jobs in the U.S. and Puerto Rico, including about 200 in Lake County, Ill., and about 300 in Temecula, Calif.
Medical device maker Invacare laid off nearly 150 from an Ohio manufacturing facility, citing a "decline in production" following an injunction agreement with the FDA.
St. Jude Medical’s John Heinmiller, a vice president at the medical device company, downplayed the notion that job cuts were tied to the medical device tax, calling the levy one of many price pressures facing the business.
Contrary to a widely circulated statement, Covidien’s decision to cut workers and shift production overseas was not motivated by the impending medical device tax, the company said.
Medtronic confirmed that it would cut about 220 jobs from its cardiac rhythm management business, a division that saw a 9% decrease in the company’s 3rd quarter.
Cost-cutting moves by medical device companies resulted in the loss of more than 2,000 jobs over 2 months.
Medtronic gets half-way through a 2012 restructuring plan, expecting to cut another 500 positions in hopes of saving up to $125 million per year.
Stryker stays on track for the 5% workforce reduction that the company said it would conduct before the end of 2012 in anticipation of a $150 million tab for compliance with the medical device tax taking effect January 1.
Hill-Rom Holdings said it planned to lay off 200 workers, or 3% of its workforce, in part due to the looming medical device tax.
Zimmer planned cuts and outsourcing at its Warsaw, Ind., headquarters partially to offset the impending burden of a 2.3% medical device tax.
Heidi Dohse was diagnosed with a rare arrhythmia in 1982 and has been 100% pacemaker dependent for over 30 years. With the help of wearable devices, she has been able to pursue her dream to become a competitive cyclist.
You can hear her story and more when you register for DeviceTalks Boston, October 8-10.
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