Nellcor Puritan Bennett Announces Consolidation Plans after Merger

Strategic Insights -

Nellcor Puritan Bennett Incorporated has announced plans for facilities and workforce consolidation following the completion of its merger with Puritan-Bennett Corporation. The consolidation will result in the elimination of approximately 300 positions, totaling 4,100 employees across various corporate, sales, and manufacturing sites. The company aims to combine facilities in the San Diego area, pending FDA approval, and consolidate headquarters operations in Pleasanton within the next several months.

Key Takeaways:

  • The consolidation will result in the elimination of approximately 300 positions, representing a reduction of about 6.9% of the total workforce.
  • The affected positions are spread across corporate administrative groups, field sales and customer service, and manufacturing sites to be consolidated in the San Diego area.
  • Two sites in Tijuana, Mexico will also be combined as part of the consolidation.
  • Employees affected by the consolidation will be offered alternative opportunities within the company, outplacement, or severance benefits.
  • Nellcor Puritan Bennett Incorporated is the global leader in respiratory care monitoring, diagnosing, and treating patients across the care continuum.
  • Additional manufacturing plant and sales office consolidations among the company's approximately 80 worldwide locations are being considered in a comprehensive review.
  • The consolidation is expected to be completed by the end of calendar year 1996.

Statistics:

  • 300 positions will be eliminated as part of the consolidation effort.
  • Total workforce: 4,100 employees.
  • 6.9% reduction in workforce due to consolidation.
  • Two sites in Tijuana, Mexico will be combined.
  • 80 worldwide locations are being reviewed for potential consolidation.

Sources:

  • Business Wire, "Nellcor Puritan Bennett Incorporated Announces Plans for Facilities and Workforce Consolidation Following Completion of Merger with Puritan-Bennett Corporation" (Sept. 1, 1995).
  • Nellcor Puritan Bennett Incorporated public statement.