Obamascare – Stryker to cut 5% of workforce

By · November 11, 2011 · 1 Comment
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Obama

Stryker, the Kalamazoo-based maker of artificial hips and knees, will cut 5% of its global workforce by the end of next year to reduce costs in the face of new fees on device makers required by the U.S. health care law.

The job cuts will reduce annual pretax operating costs by more than $100 million beginning in 2013, when the medical-device excise tax is scheduled to take effect, Stryker said Thursday in a statement. Stryker had more than 20,000 employees as of Dec. 31, according to Bloomberg News data.

Stryker expects to record $85 million to $95 million of the expense in the fourth quarter of 2011.

"These actions are part of our ongoing focus on quality, innovation and cost, and position the company to continue to provide strong, consistent growth in a changing environment," CEO Stephen MacMillan said.

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  • Atjohnson22

    Since early 2007 the company has received three Warning Letters from the Federal Drug Administration citing issues in compliancy.[11]
    The first of these, a seven-page correspondence, named various issues
    at an Ireland-based manufacturing facility such as untimely fix of
    failures and procedural noncompliance in the testing of failed or
    otherwise problem-prone devices. [12]
    The second, sent November 2007, cites issues at the firm’s Mahwah, N.J.
    facility including poor fixation of hip implant components, in some
    instances requiring mitigation by revision surgeries; exceeded microbial
    level violations in the cleaning and final packaging areas of the
    sterile implants; and failure to institute measures in prevention of
    recurrence of these and other problems. [13]
    The final warning letter, sent April 2008, cites issues at the firm’s
    Hopkinton, MA biotechnology facility. Again, issues relate to quality
    and noncompliance including falsification of documents relevant to the
    selling of products to hospitals which are to be sold under a limited,
    government-mandated basis. Stryker maintains that employees involved in
    the falsification of documents have since been terminated. [14]

    In the Fall of 2007, Stryker, along with the related companies:
    Biomet, Zimmer Holdings, DePuy Orthopaedics and Smith & Nephew, were
    involved in civil ligation with the U.S. Department of Health and Human
    Services, Office of Inspector General. This litigation called for a net
    payout of $311 million as the governmental department maintains the
    aforementioned companies engaged in unlawful kickbacks to physicians who
    urged hospitals to purchase their respective products

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