Smith and Nephew streamlines operations to save $57 million
This article was originally published in Clinica
Smith & Nephew is to restructure its operations into three main global businesses in a bid to reduce costs by £35 million ($57 million) annually by 2002. In addition, the UK-based company plans to boost investment in these three businesses - orthopaedics, endoscopy and woundcare - while improving the profitability and cash flow of its remaining interests, which will also operate on a global basis. S&N aims to achieve an operating margin of 17% (a 3% increase) by 2001 and "high single-digit" earnings per share growth from 1999 onwards. Some 1,000 jobs will be cut - just under one-tenth of the total workforce.