Welch Allyn lays plans for European restructuring

SKANEATELES FALLS  —  Welch Allyn released a blueprint today for changes to its European operations under its ongoing companywide restructuring.

The medical-device manufacturer plans to set up a new Europe and Middle East (EME) region headquarters in the Netherlands in the Amsterdam area. It also wants to place an operations center in the region that will include logistics infrastructure, product configuration, bench repair, and frontline technical services phone support.

Locations in Germany and Mexico will be affected by the changes as well. Welch Allyn wants to move manufacturing from its Welch Allyn GmbH & Co. KG operation in Jungingen, Germany to a facility in Tijuana, Mexico. Doing so will provide cost savings and move blood-pressure aneroid production closer to major markets, the company said in a news release. It anticipates the relocation could start as early as October 2013 and wrap up six to 12 months from then.

Welch Allyn expects to continue running its facility in Navan, Ireland, although it said some operations will move to the planned new European headquarters over two years.

“These actions are a continuation of the global restructuring program we announced in September,” Welch Allyn President and CEO Steve Meyer said. “At that time we announced we would conduct a rigorous 90-day evaluation of our EME business deployment. We need to realign our resources in the region in order to meet the challenges and opportunities of a rapidly changing global health-care environment.”

The manufacturer plans to cut its workforce by 10 percent over three years under the restructuring. Its Skaneateles Falls headquarters, home to over 1,300 employees, is in line to lose 45 jobs. Companywide, Welch Allyn employs nearly 2,700 employees in 26 different countries.

Contact Seltzer at rseltzer@cnybj.com