Welch Allyn to cut ten percent of workforce in response to US medical device tax

12 September 2012 (Last Updated September 12th, 2012 18:30)

Welch Allyn, a diagnostic equipment manufacturer, has announced plans to cut 10% of its workforce in response to the upcoming US medical device tax.

Welch Allyn, a diagnostic equipment manufacturer, has announced plans to cut 10% of its workforce in response to the upcoming US medical device tax.

The job cuts, which are part of a company-wide restructuring programme, will take place over the next three years and primarily affect employees in the US.

The US tax will involve a 2.3% levy on FDA-approved medical devices from January 2013.

Welch Allyn plans to offer an employment package and educational funding to individuals who lose their jobs.

Welch Allyn president and CEO Steve Meyer said; "The company will reimburse up to $4,000 of the cost of education for the successful completion of coursework through an accredited institution of higher learning and/or for the successful achievement of a professional certification designation offered by a recognised organisation."

The restructuring programme will see the establishment of three product development and technology centres in Skaneateles Falls, New York; Beaverton, Oregon, US and Singapore.

"Welch Allyn's global headquarters in Skaneateles Falls will continue its evolution into a high technology centre, capitalising on demand for the company's digitally-enabled patient vital signs monitoring systems and diagnostic cardiology product offerings, in addition to its traditional core opto-electronic product categories," added Meyer.

The company will also establish a global finance shared service centre in Tijuana, Mexico and reorganise its Latin America business.

European operations will be evaluated to determine optimal deployment of business in the region.