Philips Healthcare (NYSE:PHG) said it plans to move 100 jobs to a Highland Heights, Ohio-based research & development facility as it cuts back at its nuclear medicine arm in San Jose, Calif.
The Dutch subsidiary in 2006 moved its nuclear medicine HQ from California to the Ohio location, where the company currently employs 1,200.
The proposed additions, with average annual salaries of $115,000, will be a part of Philips’ medical imaging R&D operation, according to Cleveland.com.
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Philips sought government help for the move. The technology titan wanted at least $10 million in assistance from the Ohio government; the Ohio Third Frontier Commission came up with half that in a grant. Ohio Gov. John Kasich (R) is expected to reveal his own benison today, according to the website, in the form of a tax credit. Another $3 million could come via an interest-free loan from Cuyahoga County and the Global Cardiovascular Innovation Center put up a 3-year, $500,000 grant based on job-creation milestones, according to Cleveland.com.
For its part, Mentor, Ohio-based Steris said it’s planning “a significant investment involving a number of jobs” there, a spokesman told the website.
Job creation has been a scarce thing in the medical device world lately.
Stryker (NYSE:SYK) recently made good on a promise to cut jobs ahead of the 2.3% med-tech tax by shuttering two New York plants, leaving 160 out of work.
British orthopedic giant Smith & Nephew (NYSE:SNN) completed a round of recent layoffs, including 24 cuts in Massachusetts. SNN also terminated 80 positions in Tennessee.
Earlier this year, Philips Healthcare parent Royal Philips Electronics announced plans to cut 4,500 jobs to boost profits after reporting its worst quarterly results in two years.
The Dutch conglomerate posted profits of $105.3 million (€76 million) on sales of $7.48 billion (€5.40 billion) for the third quarter, down 85.5 percent and 1.2 percent, respectively.
Philips’ healthcare division logged "solid" growth of 7 percent after taking account of exchange rates, according to a press release. Philips Healthcare reported sales of $2.85 billion (€2.08 billion) during the third quarter, compared with sales of $2.84 billion (€2.07 billion) during Q3 2010.
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