Medtronic laying off undisclosed number of employees to reduce costs
Medtronic has confirmed that it is in the process of laying off an undisclosed number of employees as a part of a long-term strategy to slow down spending. Medtronic CEO Geoff Martha emailed employees about the layoffs on April 18, as first reported by the Minnesota Star Tribune, but the company is not sharing specific details at this time.
During a Feb. 21 earnings call, Martha said the company was eying the possibility of making “significant cost reductions” in 2023 and beyond as a part of an ongoing “aggressive transformation.” These layoffs appear to be a part of that transformation.
“To better position the company for future growth, we announced yesterday that we intend to reduce our full-time global workforce in the coming months, with certain employee notifications beginning today,” Medtronic spokeswoman Erika Winkels told Cardiovascular Business. “These decisions are never easy, and we’re taking great care to treat all impacted employees with dignity and respect. Medtronic will follow fair, consistent processes and provide comprehensive transitional resources to impacted employees during this time.”
Winkels also emphasized that she could not share specific details on which departments or offices may be impacted by these cuts.
“We don’t have a number to share, as the company is still working through employee notifications over the coming months,” she said.
During that February earnings call, Medtronic announced that it had earned a total revenue of $7.727 billion in the third quarter of 2023. This was nearly identical to the $7.763 Medtronic earned in 2022’s third quarter.
Martha did highlight “strong performances” by Medtronic’s cardiovascular and diabetes portfolios during the call. He also specifically mentioned the company’s recent success with its Evolut FX transcatheter aortic valve replacement solution as a bright spot, saying he has seen “great physician reception” to the device. The company is currently working to gain regulatory approval for Evolut FX in the Japanese and European markets.
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