Job cuts are on the way at Boston Scientific Corp. after the Boston company missed analysts’ profit estimates in part because of a 5.3-percent decline in sales of implantable defibrillators manufactured by Guidant Corp., the Indianapolis company that Boston Scientific acquired last year.
Boston Scientific officials told analysts during a conference call this morning that the company would “reduce expenses and head count,” according to Bloomberg.
The company returned to profit by posting $115 million in net income in the second quarter after having digested its $27.5 billion acquisition of Guidant.
However, most of the profit shortfall was caused by a 32-percent drop in sales of drug-coated stents. The stents help prevent arteries from closing after surgery.
Last week, Boston Scientific agreed to pay $195 million to settle lawsuits that claimed Guidant hadn’t been forthcoming about defects in its heart defibrillators. Guidant recalled 109,000 defibrillators that had been tied to seven deaths.