Dear BD Associates,
As we prepare to wrap-up fiscal year 2015 in the coming weeks, we are taking a close look at our business to ensure we are well positioned to continue to succeed in FY16 and over the long term. This ongoing effort – to make decisions that ensure our competitiveness and our ability to invest in growth drivers – is essential, particularly in an industry as dynamic as med tech and at a company like ours, where we’re in the midst of a complex integration and transformation.
As a result of this necessary – but difficult – work, we recently completed informing approximately 220 associates that their positions will be eliminated. In addition, we announced our intent to transfer IT Infrastructure to an external service partner, a decision that will impact approximately 30 percent of our IT organization within the Americas and Asia in 2016.
This workforce reduction was driven by a number of factors. A majority of the positions that were eliminated tie to our previously communicated U.S. talent selection process that examined organization structure and staffing beginning Day One of the CareFusion integration. The remaining positions were eliminated across several of our business units, which took action in support of our FY16 budget and related performance expectations. Separately, within IT, the Infrastructure Sourcing strategy is one way IT is using the CareFusion integration as a catalyst for change and transforming how it operates to drive growth and support the company’s cost-saving goals.
While the specific rationale behind each of these actions varies, the overall goal is the same: To help achieve our full potential as a better and bolder BD. When we are able to identify and achieve organizational efficiencies and cost savings, we can invest more in growth opportunities such as R&D, market development and regional expansion. For example, the decision to pursue an external service partner to support IT Infrastructure will allow the function to invest more in Business Enablement capabilities, such as mobility, user experience, and data and analytics. Adopting bold transformation strategies and rigorously prioritizing where we invest and how we align resources will make us a stronger and more globally competitive company over the long term.
We recognize that efforts like these often create anxiety and uncertainty, particularly when we look at the organization on an ongoing basis to ensure we’re structured in the most effective – and efficient – way to meet the needs of our customers and deliver on our strategic and financial commitments. These actions affect US based businesses and functions, except manufacturing, where we continue to follow a separate process, as previously communicated.
Thanks to your collective efforts, the new BD is well positioned to continue on our track of strong performance. Given this, I expect one question you might ask is, “Why do we need to take these actions if we are doing well?” It is a very reasonable question, because it seems inconsistent to congratulate you on strong performance and still take the types of actions announced today. Our relentless pursuit of efficiency, operational effectiveness and meeting our financial expectations is exactly what makes us such a consistently strong performer. While decisions like these are never easy, I am confident that we are taking the right steps, and I am optimistic about the opportunities and journey ahead of us.
In closing, I want to thank you all for your hard work, particularly as we close out FY15 – an altogether exceptional, historic year for BD. Your continued dedication and commitment – to our values, our customers and their patients – has helped us succeed during a year of significant change and transformation, and I look forward to continuing to work together as we enter FY16.