Medical device maker Covidien Plc said it would cut costs by outsourcing services to low-cost locations and consolidating manufacturing and distribution centers.

The company said it expects to record related charges of about $350 million to $450 million, most of which will be incurred by the end of fiscal 2018.

Covidien said the restructuring, which has been approved by its board, is expected to save about $250 million to $300 million annually, with savings beginning in fiscal 2014 and accelerating in fiscal 2015.

The company expects a large portion of the restructuring to be completed by the end of fiscal 2018.

(Reporting by Esha Dey in Bangalore; Editing by Saumyadeb Chakrabarty)