On October 22, 2013, the Board of Directors of Boston Scientific Corporation (the “Company”) approved, and the Company committed to, a 2014 restructuring program (the “Program”). The Program is intended to build on the progress the Company has made to address financial pressures in a changing global marketplace, further strengthen its operational effectiveness and efficiency and support new growth investments. Key activities under the Program include continued implementation of the Company's ongoing Plant Network Optimization (PNO) strategy, continued focus on driving operational efficiencies and ongoing business and commercial model changes. The PNO strategy is intended to simplify our manufacturing plant structure by transferring certain production lines among facilities. Other activities involve rationalizing organizational reporting structures to streamline various functions, eliminate bureaucracy, increase productivity and better align resources to business strategies and marketplace dynamics. These activities will start to be initiated in the fourth quarter of 2013 and are expected to be substantially completed by the end of 2015. The Company estimates that the Program will reduce gross annual pre-tax operating expenses by approximately $150 million to $200 million exiting 2015, and expects a portion of the Program savings to be reinvested in strategic growth initiatives. The Company anticipates a gross reduction of 1,100 to 1,500 positions worldwide through a combination of employee attrition and targeted headcount reductions as a result of the Program implementation. Plans detailing specific employee impacts will be developed for each affected region and business, and the Company will work with employee representative bodies where required under local laws. The Company estimates that the implementation of the Program will result in total pre-tax charges of approximately $175 million to $225 million, of which approximately $160 million to $210 million is expected to result in future cash outlays.
The Pain Stimulation market was built around docs trialing patients in the office for dollars. CMS finally reacted after seeing enough invoices for 32 units and while the music may not stop playing, it will definitely slow down and some of the chairs will be gone.
