SKANEATELES -- Welch Allyn, a Skaneateles-based medical device maker, plans to cut about 10% of its global workforce over the next three years.
Speaking with CNYCentral by phone, the company’s president and CEO Steve Meyer confirms 275 jobs will be lost worldwide, including 45 locally.
“We firmly believe this restructuring program is the right thing to do for the long-term success of the business, however, we also fully recognize the hardship it will cause some of our colleagues in the short term,” Meyer said.
The cuts will include both voluntary and involuntary offerings. Employees will be given severance packages and offered an educational assistance program.
Company leaders say the cuts are part of a restructuring plan. They blame the layoffs on the new medical device tax set to take effect next year as part of the Affordable Care Act. The mandate requires a 2.3% tax on sales of medical devices.
“This restructuring plan will help us maintain competitive levels of investment in new products and technologies that are necessary to meet the changing needs of the global healthcare environment,” stated Meyer.
Welch Allyn will also create a Global Finance Shared Service Center in Tijuana, Mexico and consolidate its North American manufacturing and related support functions at its largest facilities in Skaneateles Falls and Tijuana, Mexico.
Welch Allyn currently employs 2,750 globally including 1,300 in Skaneateles.
