06 Sep 2012, BioSpectrum Bureau , BioSpectrum
Singapore: St Jude Medical, a global medical device company, will realign its product divisions into two new operating units as part of its latest cost-cutting measures. The press statement released by the company said it has also eliminated around 300 jobs following the realignment.
The two divisions of the company will be the Implantable Electronic Systems Division (IESD) and the Cardiovascular and Ablation Technologies Division (CATD). The company will also centralize several support functions, including information technology, human resources, legal, business development, and many marketing functions.
"The reorganization we have announced is part of a comprehensive plan to accelerate our growth," said Mr Daniel J Starks, chairman, president and chief executive officer of St Jude Medical. "We are focused on reducing costs, leveraging economies of scale, maintaining the highest level of quality, and funding our entire portfolio of new growth drivers."
The company's US and international divisions, which are focused on product commercialization, will continue serving customers based on existing call points and specialties.
Under the leadership of Mr Eric Fain, the IESD will comprised former Cardiac Rhythm Management Division and the former Neuromodulation Division. Under the leadership of Mr Frank Callaghan, the CATD will comprised former Atrial Fibrillation Division and the former Cardiovascular Division. Mr Fain and Mr Callaghan will report to Group President Mr Michael Rousseau.
As part of the reorganization, three additional executive officers have been named: Mr Donald Zurbay, Ms Rachel Ellingson and Ms Kathleen Chester. Mr Donald Zurbay is now vice president, finance and chief financial officer, reporting to Mr John Heinmiller, who is taking on an expanded role as executive vice president, overseeing the centralization of the IT, HR, legal and business development functions.
Ms Rachel Ellingson has been named vice president, corporate relations, as Ms Angela Craig assumes additional responsibilities as vice president, global human resources. Ms Kathleen Chester has been named to a newly created role of vice president, global regulatory.
The company estimates that as a result of the organizational changes announced today, it will be able to reduce pre-tax operating expenses by approximately $50-$60 million annually beginning in 2013. It is providing support to the approximately 300 employees whose jobs have been eliminated.