St. Jude Medical Inc. announced Tuesday that it is further streamlining operations and shuffling its management team as part of a multiyear strategy begun in 2012 to improve growth.
The restructuring will consolidate its two operating divisions into a single research and development organization, as well as combine manufacturing and supply-chain operations worldwide.
“One reason 2013 was such a successful year for us was that we streamlined our organization, improved productivity, and reduced costs through organizational changes we announced in August 2012,” St. Jude CEO Daniel Starks said in a statement. “The changes we announced today will help us build on that success to further leverage our scale, align on our highest priorities and improve execution of our long-term growth program.”
In August 2012, the Little Canada-based company eliminated 300 jobs in a global reorganization. In November of that year, the company shed another 500 positions. Company spokeswoman Amy Jo Meyer said the moves announced Tuesday are “a continuation of the effort we have made over the last two years to transition our business to a centralized organization.”
But unlike in 2012, Meyer said, the latest moves won’t result in net job losses. In fact, she said Tuesday, St. Jude still has 250 positions in the United States that it is trying to fill.
As part of the executive changes, Michael Rousseau, previously group president of St. Jude Medical, has been promoted to chief operating officer. Rousseau will now oversee sales, marketing, quality, technology development, operations and supply chain on a global basis.
Eric Fain, previously president of St. Jude’s implantable electronic systems division, has been promoted to group president of St. Jude Medical and will now oversee all clinical, regulatory and research and development activities across the company. Over the next several months, Fain will lead the integration of that division and the cardiovascular and ablation technologies division into one cohesive St. Jude Medical research and development organization.
The company also announced three new officers. Scott Thome is being promoted to the newly created position of vice president, global operations and supply chain; Lisa Andrade has been promoted to chief marketing officer; and Jeff Dallager has been promoted to vice president, corporate controller.
Frank Callaghan, previously president of the cardiovascular and ablation technologies division, has decided to retire, the company said. He joined St. Jude’s leadership team in 2005 as part of the Endocardial Solutions acquisition. He will remain an adviser to the company through 2014.
“Frank has led the implementation of numerous technology programs within our business and has been instrumental in driving our growth and reputation as an industry leader in the cardiovascular market,” Starks said.