Medical-device giant Medtronic announced a multibillion-dollar restructuring program Monday that will impact an undisclosed number of employees.
The company discussed its plan at the J.P. Morgan Healthcare Conference on Monday and unveiled some details in a Securities and Exchange Commission filing. Medtronic expects the plan to result in more than $3 billion in annual gross savings by the end of its 2022 fiscal year.
The restructuring will affect an undisclosed number of employees, but Medtronic’s total employee count will hold steady, the company said in an SEC filing. Medtronic has about 9,000 employees in Minnesota and is among the state’s largest employers.
“The company expects that its overall employee base will remain relatively unchanged, as new jobs are created in new capability areas and resources are deployed to support the company’s growing market needs,” Medtronic said in a regulatory filing.
Medtronic expects to record charges of between $1.6 billion and $1.8 billion over a five-year period as a result of the restructuring, which it named “Enterprise Excellence Program.” Between 40 and 50 percent of those charges will be tied to employee-related costs, including severance expenses.
Medtronic cut an undisclosed number of jobs at its operations in Memphis over the summer, and said in August it would lay off 185 workers in Illinois after closing a distribution center. A company spokesman told MassDevice that Medtronic has more than 4,000 open positions.
Medtronic unveiled some of the program’s goals — such as improving productivity and integrating manufacturing systems — but few details.
“The program is designed to drive operating margin improvement as well as fund investment in strategic growth initiatives,” the company said in the regulatory filing.
Dublin-based Medtronic’s operational headquarters in Fridley.
By Katharine Grayson
Source: Biz Journal Minneapolis
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