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Massive layoffs as ObamaCare looms

November 09, 2012
The Washington Times is reporting that many companies plan massive layoffs as ObamaCAre becomes a reality:
Freedom Works has put together a list of companies that will be laying off employees as a result of President Barack Obama's health care law:

Welch Allyn

Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years. One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.

Dana Holding Corp.

As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing "$24 million over the next six years in additional U.S. health care expenses". After laying off several white collar staffers, company insiders have hinted at more to come. The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.


One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December. Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce - an estimated 1,170 positions.

Boston Scientific

In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could "lead to significant job losses" for his company. Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas - to China.


In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs. That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.


A short list of other companies facing future layoffs at the hands of Obamacare:

Smith & Nephew - 770 layoffs

Abbott Labs - 700 layoffs

Covidien - 595 layoffs

Kinetic Concepts - 427 layoffs

St. Jude Medical - 300 layoffs

Hill Rom - 200 layoffs

Beyond the complete elimination of a significant number of American jobs is another looming problem created by the health care law - a shift from full-time to part-time workers.
Click here to read the rest of the story.

  1. reply print email
    That cuts two ways...
    November 10, 2012 | 04:21 AM

    Good that you're listing those companies. Customers should punish them by taking their business elsewhere for preemptively laying off workers to punish them for voting Obama.

    Afterall, that's how the market works, right?

  2. reply print email
    rusty should vote the right way the first time...
    November 10, 2012 | 10:09 AM

    So according to RustyIron, we punish the companies so no one wins. Sounds fair, but why not just vote the right way the first time and everyone wins?!

  3. reply print email
    November 10, 2012 | 10:54 AM

    If you owned a company and you knew in the year to come you would have to pay millions more towards health care due to the new laws wouldn't you start preparing now?? If you know your family would have to start paying a lot more in taxes to pay for everyone's healthcare wouldn't you start making adjustments to your families budget now?It's interesting how you think that Obamacare won't effect these companies and how you are upset that they are being proactive to keep their businesses going due to the harsh consequences that the new healtchare will have on their companies. Someone has to pay for healthcare. money doesn't grow on tress unfortunately. I think some people think that there will be no consequences to everyone having healthcare. I'm wondering if Obama will give everyone a car next and who will pay for. The hard working americans as usual. God Bless America

  4. reply print email
    Learn from the mistakes of Ancient Rome and USSR
    November 10, 2012 | 02:00 PM

    To the first commenter, please go back to school and learn economics - you will be doing all of us a favor. It's a matter of checks and balances and simple economics. When you tax spike a company, expect that company to cut down in employment and other services to be able to maintain growth or in a worst case scenario, to be able to survive and not file for chapter 13 bankruptcy; unlike America as a country which spends more money than what it's economy fiscally produce - having it's credit standard demoted twice in less than a year.

    Common Sense
  5. reply print email
    Response to Obama-ite
    November 10, 2012 | 02:31 PM

    What makes you think they are doing this to punish people?

    They are planning ahead for anticipated expenses. If a business knows that its costs are going to increase why wouldn't they plan ahead?

    But that idea makes no sense to you. You think everyone is a "hater". It's amazing you did not toss in racism too.

  6. reply print email
    November 10, 2012 | 04:54 PM

    when voters are so gullible and assume that everything a canidate says is gospel, and are not intellegent enough to research what the truth really is bad things happen. Like being surprised with crushing taxes, and losing freedoms.There is no political santa claus, freebies are not really free.

    Joe Hodge
  7. reply print email
    Ant and the grasshopper
    November 10, 2012 | 06:15 PM

    So many people want to punish these companies, but we made the rain with our votes for a socialist agenda. My advice for those who make over 250k: Quit and let people perfom heart surgery on themselves--you will be more respected in the welfare line.

  8. reply print email
    Really, Rusty?
    November 10, 2012 | 08:20 PM

    Obviously Rusty has no idea how the economy OR running a business works, and no idea of the implications of Obamacare on many companies' bottom lines. My company will not be able to expand as we had planned, simply because Obamacare would not make it affordable. Most likely these companies work closely with advisers who tell them what will be in the financial best interest of their company. If Obama voters get laid off, I feel no sympathy for them... they got what they asked for!

  9. reply print email
    Medical device tax
    November 10, 2012 | 11:53 PM

    I have read some sad comments regarding manufacturers laying off employees due to the device tax implemented BT Obamacare. Most of these companies are trying be bring life saving innovative products to market Many employ small towns generating revenue for it's citizens. Of course they will have to trim some fat to be able to keep there doors open. They don't want to lay off people and make the retained employees work harder. They do want to stay in business while some CEO's make more than you, shouldn't they. Would you do the job for 50 k a year? Why would you want to punish them. Should we punish farmers who raise our food? This is free enterprise what the USA is built on. People who have something bad to say about these companies have either their Hands out or they are 30k a year workers who have no clue. This is very bad America wake up.

    Willa moats
  10. reply print email
    Spot on Rusty
    November 11, 2012 | 09:33 AM

    What better way to punish Conservatives than not buying their goods and services? Perfect!!

  11. reply print email
    November 11, 2012 | 04:58 PM

    What no one wants to point out is that when there is added expense to the companies for producing products or services, the cost of those products or services must increase in order to maintain the same level of profits. Food, gas, electricity, everything will go up in price as a result. Your wages won't go up, but the price of everything else will.

  12. reply print email
    Kim, you're correct
    November 11, 2012 | 08:11 PM

    but it is more incidious than inflation. Some companies suffer from products with a relatively elastic demand. That means that even if the company raises their price to try to compensate for the higher costs the demand for their product (at a higher price) may decline and often disproportionately to the change in price. Thus, a relatively small increase in price may push demand down so much that more people are layedoff. When this happens, the supply of labor increases as demand for labor decreases and thus the entire wage structure may be depressed.
    Government inteference in the market distorts those markets and typically hurts everyone. The Law of Unintended Consequences is alive an well, even if Obama and those who voted for him do not understand it.

  13. reply print email
    November 12, 2012 | 01:01 AM

    When you put a guy in office and you haven't a clue who he is? STOP.... Complaining, when you don't have food, clothing,
    home,nor a job. You can tell you kids, why you voted for Obama? At least now you know you aren't a racist! Think they will care?

  14. reply print email
    Who's cruel?
    November 12, 2012 | 01:50 AM

    Um. If my business has 70 employees and Obamacare requires me to offer an approved insurance plan or pay a penalty of $2000 for each full time worker over 30 workers. Let me see. How much does this take out of my profit margin? Say what?! But it does not apply if I do not have over 50 employees. Attention! We will be laying-off 20 employees immediately!

    What do you mean some mob of liberals think I'm cruel? It's the dad burned government that's cruel.

    Charles Hickman
  15. reply print email
    ObamaScare is ruining small business, I should know.....
    November 22, 2012 | 02:08 AM

    ...I own a small business. My company was on track to surpass the magic 50 employee mark in 2013. Not only has our strategies changed since Obama was re-elected, we have already cut positions, giving minimal raises if any at all, and will continue to flirt with the 45-47 employee range instead of growing and employing more people. Why? Because us business owners really have no idea what the F@$K is going on. How is a company supposed to even plan when the government still doesn't have it right? The bill is 2700 pages, and there have been 10's of thousands of pages written on how to regulate it. The only thing to do is hunker down and try and weather this storm. HUNKERING DOWN DOES NOT CREATE JOBS! No one even knows the cost yet! As a business owner myself, knee jerk reaction is to save money and wait.

    So many are saying "only an extra 11 cents per pizza, that's nothing." What they are forgetting is that is in ADDITION (yes, it's simple math folks) to normal inflation. And we all know what a gallon of milk goes for now, OMG! It's as much or more than a gallon of gas!

    And one other question, why do the liberals think all business owners are right wing nuts and none of them voted for Obama? If that were they case, Obama would not have won. Privately owned media outlets would have destroyed him. Instead, they were to scared be "racist" and painted a picture instead of giving us facts.

    Rusty, it's not punishment, it's consequence. So is all the money that is LEAVING the country right now because of this. Those dastardly rich people that create jobs will go to areas of the globe with less tax, lower labor costs and they'll do it in style. Boston Scientific is a perfect example.

    "That's how the market works." Rant over.

  16. reply print email
    ObamaCare outsourcing
    May 05, 2013 | 12:37 PM

    OBAMACARE promotes outsourcing in Central America. Enacted in July 2010, The U.S. healthcare reform "ObamaCare" or the "Patient Protection and Affordable Care Act" is intended to pressure large and small employers through force and taxation. The end result will show North American companies deciding to send customer support, sales, lead generation and appointment setting jobs offshore or risk going out of business. Many will decide to hire a dedicated bilingual employee who is 100% committed to their project. ESL call center employees in Costa Rica are just as or more effective than transitional in-house staff. In addition, giving the owners the freedom to scale up their offshore staff without getting caught in the Obamacare challenge in 2014.

    Costa Rica Call Center
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