Boston Scientific said Thursday it is cutting the wages of many of its roughly 36,000 global employees by 20 percent for the next 90 days because the postponement of elective surgeries during the coronavirus pandemic has reduced revenue.
The Marlborough-based medical device maker also plans to make deeper cuts to the base salaries of its chief executive, Mike Mahoney, and those of its board of directors and executive committee, predicting that the impact of COVID-19 will be worse in the second quarter.
Boston Scientific, which has almost 3,000 employees in Massachusetts, plans to reduce the salaries of many employees by having them go to a four-day work week.
Advertisement
In a filing Monday with the Securities and Exchange Commission, the firm said business was down because surgeons both domestically and abroad were postponing elective surgeries and procedures during the epidemic. Many of those procedures use the company’s medical devices. The firm said Thursday that first-quarter revenue declined approximately 2 to 3 percent compared to the same period in 2019.
“As healthcare systems respond to the increasing demands of managing COVID-19, emergent procedures need to be prioritized to help enable increased hospital capacity, and therefore elective procedures are being delayed," Mahoney said Thursday.
"While we expect this to negatively impact short-term performance, we continue to believe in the excellent, long-term fundamentals of our company and will continue to manage through these challenges with strategic focus and the winning spirit of our talented global team,” he said.
Boston Scientific is one of the biggest companies in Massachusetts, with a market value of about $42 billion.
The firm’s share price was down more than 7 percent in pre-market trading.
Jonathan Saltzman can be reached at jonathan.saltzman@globe.com
"Many" - Google News
April 02, 2020 at 06:29PM
https://ift.tt/2WYAO29
Boston Scientific cuts pay for many of its 36,000 workers, citing revenue drop because of coronavirus - The Boston Globe
"Many" - Google News
https://ift.tt/2QsfYVa
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Boston Scientific cuts pay for many of its 36,000 workers, citing revenue drop because of coronavirus - The Boston Globe"
Post a Comment