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Covidien eliminates about 70 jobs in Mansfield

Covidien cut 70 jobs at its US headquarters, Mansfield.

Michele McDonald for The Boston Globe

Covidien cut 70 jobs at its US headquarters, located in Mansfield.

Irish medical supplies company Covidien PLC is shedding nearly 150 jobs worldwide, including about 70 at its US headquarters in Mansfield as part of a five-year plan to cut costs.

Workers losing their jobs were notified in stages over the past two months since Covidien — which spun off its drug-making business last summer — approved a restructuring plan Sept. 18 that calls for the company to consolidate its manufacturing and distribution sites.

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“These changes have been made to improve our operational and cost structure, align to our newly formed medical devices organization, and support our strategic imperatives,” said Covidien spokeswoman Lisa Clemence. She said affected employees will receive severance pay.

Covidien has about 38,000 workers globally, including 1,800 in Massachusetts.

In a September regulatory filing, the company said its restructuring plan aimed to save $250 million to $300 million annually, starting in the 2014 fiscal year, which began Oct. 1.

The plan will focus on “reducing corporate expense, expanding the use of shared services in low-cost locations, outsourcing services where appropriate, streamlining the company’s organizational structure, consolidating manufacturing locations, consolidating and optimizing distribution centers, and expanding low-cost country sourcing,” according to the filing. Covidien expects most of the restructuring to be done by the end of 2018.

At the corporate office in Mansfield, the cuts were made across all functions, including administrative services, legal affairs, and information technology, Clemence said.

Covidien, incorporated in Dublin, is the former Tyco HealthCare, which was divested by parent Tyco International Ltd. in 2007. Over the past five years, Covidien has acquired more than a dozen mostly small medical device and supplies companies around the world. In a major strategic move, the company in July completed the spinoff of its large pharmaceuticals division. That business now operates as Mallinckrodt Pharmaceuticals, with its headquarters in Dublin and its US home office in St. Louis.

Robert Weisman can be reached at robert.weisman@globe.com. Follow him on Twitter @GlobeRobW.
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