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.Sure hope the former Stryker employees won't be needing hips replaced with one of the squeaky models they themselves made. Along with having their health care saved by the very program that put them out of a job, they experience the ignominious irony of having their self-made $40,000 squeaky hips implanted.
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.
The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.