• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » St. Jude exec: Layoffs not directly tied to medical device tax

St. Jude exec: Layoffs not directly tied to medical device tax

September 13, 2012 By MassDevice staff

St. Jude Medical logo

St. Jude Medical (NYSE:STJ) officials told investors yesterday that its recently announced layoffs aren’t directly related to anext year’s medical device tax, as had been widely speculated.

John Heinmiller, former CFO and current executive vice president, said that although the medical device tax is one of many cost pressures facing St. Jude, to the tune of an estimated $50 million-60 million per year – the same amount of savings the cuts are expected to generate.

"It’s a coincidence that [it’s the same amount] of what the excise tax would be," Heinmiller said. "There are a lot of different cost pressures we’re facing. One of those is the medical device tax."

Sign up to get our free newsletters delivered right to your inbox

Instead, Heinmiller said, the cuts are the result of management’s evaluation, "taking advantage of natural synergies."

St. Jude announced August 30 plans to lay off 300 employees and slim from 4 divisions to 2, implantable electronic systems ) and cardiovascular and ablation technologies. The realignment is aimed at reducing annual pre-tax operating expenses by about $50 million-$60 million beginning in 2013.

The restructuring is expected to cost $50 million-$80 million, including employee termination costs, accelerated depreciation, asset impairments and other charges, according to a company report.

Although the medical device tax wasn’t the direct cause of the cuts at St. Jude, Heimiller didn’t try to downplay the levy’s effect on his company or the entire industry.

People are "under-appreciating the level of complexity" involved in the tax, he said. "It’s due every 15 days, so you have to have good reporting in place."

Heinmiller, who gave up his post as CFO in the realignment, said he was not leaving the company and was planning to stay on for the foreseeable future.

Filed Under: News Well Tagged With: Layoffs, stjudemedical

More recent news

  • A new way to monitor glucose: Glucotrack explains 3-year CBGM implant technology
  • Dexcom continues advances in AI for CGM, type 2 diabetes awareness
  • Tandem continues to deliver more options, benefits for those with diabetes
  • Breaking: Sequel to launch twiist automated insulin delivery system next month
  • Dexcom shares U.S. report on CGM benefits for type 2 diabetes

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy