On top of a $1.1 billion quarterly loss, Boston Scientific Corp. announced late Wednesday it will consolidate Twin Cities operations into one business, which could result in Twin Cities job cuts.

The Natick, Mass.-based medical technology firm employs about 5,000 people locally, evenly split between its pacemaker and defibrillator business in Arden Hills (formerly Guidant Corp.) and heart stent business in Maple Grove and Plymouth. The newly morphed business, the Cardiology, Rhythm and Vascular Group, will be led by Hank Kucheman, who headed the Cardiovascular Group in Maple Grove. The consolidation is part of corporation-wide restructuring that eliminates 1,000 to 1,300 jobs worldwide and is to improve "effectiveness and efficiency," the company said.

A company spokesman did not respond to questions about the restructuring's impact on the Twin Cities, but a local analyst said it will certainly result in job losses. "If you can reduce administrative and support functions that overlap between the two businesses, it makes sense," said Tim Nelson, an analyst with FAF Advisors in Minneapolis.

The news comes as U.S. sales of the company's heart devices flounder amid growing competition and uncertainty tied to health care reform. Late last year, St. Jude Medical Inc. of Little Canada eliminated 200 jobs nationwide, and Fridley-based Medtronic Inc. reduced Twin Cities employment by 600. The last major workforce reduction locally at Boston Scientific was in 2007, when 550 jobs were eliminated, according to state employment data.

CEO Ray Elliott said the actions will help "fulfill the enormous promise of this company." The executive shuffling includes the promotion of Fred Colen, head of the Arden Hills business, to a new role of executive vice president and chief technology officer, responsible for corporate research and innovation.

The company also reported a fourth-quarter loss of $1.1 billion, or 71 cents a share, compared with a loss of $2.4 billion, or $1.59 a share, in the same period last year. The 2009 results were affected by a $1.3 billion charge to settle patent litigation with Johnson & Johnson, and other charges. The 2008 results included a $2.6 billion write-down for various charges. Excluding that settlement and other charges, adjusted net income for the quarter was $304 million, or 20 cents a share, flat compared to a year ago. Analysts expected the company to earn 13 cents a share in the quarter. Sales for the quarter were $2.1 billion, compared with $2 billion in 2008.

Boston Scientific's shares closed Wednesday at $8.29, up 6 cents. The news was released after markets closed, and shares were down about 4 percent in after-hours trading.

Janet Moore • 612-673-7752