In bad news for medical manufacturing employees, a New York firm has decided to cut employees to make up for the 2.3% tax hike going into effect next year as part of the Affordable Care Act (a.k.a. Obamacare). This tax has been controversial as anti-business during a recession.
Do you think other manufacturing firms will follow suit?
Tags: Affordable Care Act, business tax, MassDevice.com, medical devices, medical manufacturing, Obamacare, shipping, Steve Meyer, taxes, Welch Allyn
Welch Allyn plans to shed about 10% of its global workforce, or 275 jobs, to compensate for the 2.3% medical device excise tax that goes into effect next year.
The medical device company’s CEO, Steve Meyer, said yesterday that the company will undertake a restructuring plan that will pare the 2,750 workforce over the next 3 years, according to a press release. Welch Allyn also said it will run a 90-day evaluation of its European operations to “determine the optimal deployment of the business in that important market, and reorganize its Latin America business to be more competitive in the region.”
“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 in prepared remarks.