Sector News

Medtronic announces restructuring to trim costs by billions

January 10, 2018
Life sciences

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

comments closed

Related News

January 15, 2022

Colorcon Ventures invests in AI-Driven bio-simulation company VeriSIM Life

Life sciences

Colorcon Ventures, the corporate venture fund of Colorcon Inc., has invested in VeriSIM Life, a San Francisco-based startup with a digital bio-simulation platform that accelerates drug development and reduces animal testing.

January 15, 2022

A record number of biotechs are going public. Here’s how they’re performing.

Life sciences

Initial public offerings have fueled biotech’s boom. Keep track of them as they happen with this database. Which biotechs create value over time, and which fail? What types of companies are generating the best returns? Who are their top investors? Biopharma Dive is tracking these details in the database which will be updated regularly.

January 15, 2022

Sanofi cuts ties with Sangamo, sharpening focus on ‘off-the-shelf’ cell therapy

Life sciences

Sanofi has ended a long-running alliance with Sangamo Therapeutics to develop genetic medicines for inherited blood disorders, among them an experimental sickle cell disease therapy that is in early clinical testing.
The two have been developing complex, personalized treatments, led by a sickle cell drug known as SAR445136. But Sanofi is now more interested in off-the-shelf approaches, which are meant to be more convenient.

Send this to a friend