Covidien Ltd, a developer of sleep products, will implement a restructuring program beginning in fiscal 2009 to improve its cost structure and to deliver improved operational growth.
The restructuring program, which includes projects in all four business segments and at corporate, will result in the company incurring pre-tax charges of approximately $200 million beginning in the first quarter of fiscal 2009. Savings from the restructuring program are estimated at $50 million to $75 million on an annualized basis once the program is completed.
"This initiative will enable us to continue investing for future growth and profitability," said Richard J. Meelia, president and CEO. "We remain committed to making incremental investments in research and development to strengthen our portfolio and to expand into adjacent high-growth areas of the health care market."