A recent communication touched on cost reductions but not much else has been heard. Can anyone update or comment? Would like to hear the breakdown of cost reductions and how it affects the pipeline (New product development cancellation, head-count reduction by department, sales & marketing boast/reduction, etc...)
It would be justice to see senior management the first to go in the cost reduction efforts. Unbelievable clinical error AND another warning letter.
The board of directors should revoke all senior executive staff stock options, bonus payments, and reclaim all pension contributions until further notice.
Better yet - sack the lot!
I dont think 40% is going to happen. PD is where this co is going. There is a lot of contract labor that will be let go but that is already known. I would suspect duplicate jobs between stents & CRM like payroll, IT, HR etc. Engineering and sales will be untouched.
You'd be surprised. Maybe it wont account for all 15% but what do you think people work for this co are thinking as the financial troubles continue. Hiring freeze/layoffs mean no promotions/growth opportunities. Stock options and stock grants given over the past few years for the avg joe are worthless. 401ks have lost value for those that put $$ in BSC stock or in the stock purchase plan. Poor sales performance will mean poor bonuses at the end of the year. Jan 1 people will be resigning in droves if not sooner.
I have strong doubts that simple attrition will accomplish a 15% reduction, in indirect labor, anytime soon. Leno has to cut the budget, and trim off the excess, very soon, otherwise the street will punish BSX again.