Covidien is the latest medtech company to join the workforce cull as it plans to cut 595 full-time jobs with the closure of a facility in South Carolina. The closure is part of the company's plan to cut costs amid challenges brought on by pricing pressures and reimbursement issues.
The Seneca-based facility manufactures vascular products; RBC Capital Markets analyst Glenn Navarro said in a Reuters article that the plant had not been a growth driver for Covidien for some years, as it belonged to the company's legacy business. Covidien inherited a considerable healthcare products portfolio when it was renamed and spun out of the conglomerate Tyco International; since then it has pursued a strategy of divesting slow-growth product lines and investing in faster-growth businesses, such as its acquisition of endovascular treatment specialist ev3 (
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