Covidien plc (COV) Denies Layoffs Tied to Device Tax
5/10/2012 8:27:34 AM
Contrary to a widely circulated statement, Covidien's decision to cut workers and shift production overseas was not motivated by the impending medical device tax, the company says. Although Covidien (NYSE:COV) chairman, president & CEO Jose Almeida considers the impending 2.3% medical device tax "absurd," he's far from implementing dramatic gestures to cope with the new burden. The company confirmed with MassDevice.com that reports of layoffs and overseas shifts ahead of the levy were inaccurate, despite being widely disseminated.