Smith & Nephew expected to cut jobs after profits fall
A medical devices firm said it could cut jobs after profits fell in the face of hospital budget cuts.
Operating profits in Smith & Nephew's orthopaedics arm, which makes parts for hip and knee replacements, fell by 31% in the third quarter of 2011.
The company, which employs 1,600 people in Hull, York and London, said it was planning a £94m cost-saving package
Smith & Nephew operates in 32 countries but said it was too early to say where or how many jobs would go.
The orthopaedic division has been hit by sales pressure as hospitals postponed non-essential operations amid austerity measures, seeing profits fall by £46.4m.
Smith & Nephew's chief executive, Olivier Bohuon, said the "disappointing" orthopaedics business overshadowed "excellent performances" from its other two divisions, endoscopy, which deals with keyhole surgery, and advanced wound management.