Nov 10 Medical device maker Stryker Corp
said it will cut 5 percent, or about 1000 jobs to
largely offset costs related to the scheduled implementation of
the new Medical Device Excise Tax in 2013.
"While it is still uncertain whether the device tax will
exist in its current form come 2013, we believe that companies
across the space will make moves to mitigate the P&L impact of
the new excise tax," Susquehanna International Group analyst
David Turkaly wrote in a note.
The maker of hip and knee replacements and surgical
products, which expects to save about $100 million from the
restructuring, said it will record $85-$95 million of the entire
$150-$175 million charge in the current quarter.
Stryker expects to complete the restructuring activity by
Stryker shares closed at $48.27 on Thursday on the New York