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Boston Scientific Corporation Message Board

  • arerdure arerdure Aug 12, 2012 7:22 PM Flag

    more layoffs

    More people have lost their jobs at BSX. Undoubtedly the money saved will be used to pad the bonuses of exec management.

    http://www.massdevice.com/news/layoffs-boston-scientific-cuts-50-ireland

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    • In the case of BSX, it's the ineptitude of executive "management" on how to run a company, and the need to inflate their "performance bonuses" that drives layoffs. Obamacare is only an excuse for layoffs in the case of BSX, not the reason. Well-run medical device companies that have diversified and growing international sales are doing fine and will not take much of a hit from Obamacare, since Obamacare only taxes US sales of medical devices. Hence even foreign companies with overseas plants that sell foreign-made devices in the US will take a hit from Obamacare as well. BSX has moved most production offshore to Costa Rica and Ireland, but layoffs have started in Ireland.

      BSX revenues have been dropping faster than a dress on prom night for the past 4 years (even before Obama was elected), and the only way management can boost EPS is through layoffs. BSX stock price has crashed from $45 to $5 over the past 8 years. BSX has neglected their R&D pipeline since 2006 when they got the FDA Corporate Warning letter, and they have fallen years behind their competitors in terms of technology. Even with the warning letter lifted, it was a mortal blow to BSX in terms of technological advancement, and you see companies like Edwards and Medtronic with commercialized heart valves, Abbott with the fully-absorbable drug eluting stent commercialized in Europe, and JNJ walking away from the Guidant deal unscathed, while BSX took a $28 billion hit that they can never recover from. Believe me, Nicholas, Abele, Tobin, Elliott, and now Kucheman and Mahoney have done more damage to BSX to the tune of tens of billions of dollars, dwarfing a potential $100 million Obamacare tax.

    • BSC is way undervalued here, so I rate is a buy. A profitable company (not including those darn special charges) and a company with margins above 50%...to get that at under $8 is a good long term bet.
      All is not doom and gloom in the industry, but Obamas medical device tax will cost about 35,000 jobs in the next few years based on industry experts. A company like BSC cannot take a $110 million dollar hit straight off the bottom line and not react. If that means assemblying products in Costa Rica, Mexico, Puerto Rico, Ireland or where ever, companies are going to outsource. Yes, the product that comes back for sale in the US is still taxed, but the goal is to recoup the $110 million dollar Obama hit by decreasing the cost of assembly. The layoffs may have started in Ireland due to their rules for layoff announcements. No doubt, the US plants will bear the brunt of the layoffs.
      But the main point of this thread is that these layoffs are in part due to Obamas tax increase on the medical device industry. As an employee of a medical device company, you have to decide which one of these candidates is going to protect your job and your childrens chance at a job down the road. As the past poster said, you do not have much without economic opportunity. The economy has to be the #1 issue.

    • Why is your sentiment "buy"? With all your doom and gloom about the medical device industry being destroyed, why have a sentiment of buy on BSX?

      Where is BSX going to outsource? Is Costa Rica too expensive for BSX? Is Ireland too expensive for BSX? Why is BSX starting layoffs in Ireland? Also, BSX's revenues have been plummeting the last 3 years:
      http://finance.yahoo.com/q/is?s=BSX+Income+Statement&annual

      They've gone from nearly $8.2 billion in revenue to $7.6 billion in revenue from 2009-2011. There was no medical device tax during this time period, why have BSX's revenues tanked?

    • Pet_D
      To insinuate that the layoffs occuring across the medical device industry 'were going to happen anyway', is a naive statement. Look at the timing and also look at the statements by the CEO's of Stryker and Cook. They state that the medical device tax is a driving factor in their layoff decision. Those CEO's have the guts to say it. Yes, there are pricing pressures, but taxes have consequences as stated.
      Higher taxes force companies to raise prices (which they cannot do in this stagnent economy) or they find a cheaper place to manufacture (they outsource! no suprise there). And to clarify, the majority of BSC PAC contributions the past two election cycles have gone to democrats - might want to check your own link! The 2012 cycle is still underway so a conclusion cannot be made. It does appear that BSC is justifiably cutting their contributions to the democrats this cycle but the election cycle is not over yet.
      Franken and Klobuchar were THE deciding votes in the senate on healthcare, if they did not support the medical device tax they could have forged a backroom deal like several of their counterparts did. To come forward after the fact in opposition is ludicrous. This will and has cost thousands of jobs in the medical device industry.

    • Layoffs are due to obamma's extortion of the medical device industry. BSCI will owe the government 100 million dollars in 2013. Of course there will be major cuts. Yes, obamma did that.

      • 1 Reply to bmeddpt
      • In the case of BSX, it's the ineptitude of executive "management" on how to run a company, and the need to inflate their "performance bonuses" that drives layoffs. Obamacare is only an excuse for layoffs in the case of BSX, not the reason. Well-run medical device companies that have diversified and growing international sales are doing fine and will not take much of a hit from Obamacare, since Obamacare only taxes US sales of medical devices. Hence even foreign companies with overseas plants that sell foreign-made devices in the US will take a hit from Obamacare as well. BSX has moved most production offshore to Costa Rica and Ireland, but layoffs have started in Ireland.

        BSX revenues have been dropping faster than a dress on prom night for the past 4 years (even before Obama was elected), and the only way management can boost EPS is through layoffs. BSX stock price has crashed from $45 to $5 over the past 8 years. BSX has neglected their R&D pipeline since 2006 when they got the FDA Corporate Warning letter, and they have fallen years behind their competitors in terms of technology. Even with the warning letter lifted, it was a mortal blow to BSX in terms of technological advancement, and you see companies like Edwards and Medtronic with commercialized heart valves, Abbott with the fully-absorbable drug eluting stent commercialized in Europe, and JNJ walking away from the Guidant deal unscathed, while BSX took a $28 billion hit that they can never recover from. Believe me, Nicholas, Abele, Tobin, Elliott, and now Kucheman and Mahoney have done more damage to BSX to the tune of tens of billions of dollars, dwarfing a potential $100 million Obamacare tax.

    • That's only the tip of the iceberg - August 27 (Monday) will be the start of massive layoffs in Maple Grove. Trying to figure out why the company isn't making this public - everyone in house is aware that "D-Day" is coming.

 
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