Qmed Staff

August 16, 2013

1 Min Read
CareFusion Clarifies its Restructuring Initiative

In a recent news article, Qmed explored how CareFusion was responding to an increasingly-challenging market through restructuring efforts. The story mentioned an anonymous employee who claimed on GlassDoor that the company had discontinued its 401(k) plan. "This is completely false," said Troy Kirkpatrick, director, public relations in an email. "We offer a 401(k) plan and the company continues to match employee contributions up to certain percentages."

Kirkpatrick explains that the company had begun cost-cutting initiatives before the 2.3% medical device tax went into effect at the first of the year. "This has resulted in staff reductions in some areas and hiring in other areas. For example, we have reduced some positions in support functions, but added in R&D and customer facing position," he said. "The net impact has been that we have added jobs. We have not had drastic layoffs as the [original news] article implies. It is more a reallocation of our resources."

A couple of years ago, the company began to pursue an initiative to simplify its business and reduce costs across the company. "This was more of a business strategy to increase margins to be more in line with our industry," Kirkpatrick said. "We also said we would reinvest savings into R&D to continue to innovate and improve our product pipeline. We have also reinvested savings in other strategies, including acquisitions and global growth opportunities."

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