Covidien looks to FY09 restructure to savecosts
This article was originally published in Clinica
Healthcare products providerCovidien is to launch a restructuring plan in the new fiscal year, starting in October, in a bid to improve its cost structure and enhance operational growth. The programme will be implemented across all four business segments – devices, imaging, pharma and medical supplies- and at corporate level. While the restructuring will result in the Hamilton, Bermuda-based company being hit by $200m in pre-tax charges for the first quarter of fiscal 2009, it will benefit from annualised cost savings of around $50-75m once the programme is completed, said the firm. President and CEO Richard Meelia said the company remains committed to expanding into “high-growth areas of the healthcare market”.