Throughout the next four years, global medical device maker Medtronic will cut its workforce as it moves its Santa Rosa, CA operations to Danvers, MA. This is the second round of layoffs announced by the company since spring when it initially cut employees in its global operations, marketing and research and development departments within its cardiac and vascular devices divisions.
A subsidiary of Dublin-based Medtronic plc, the company is the largest, stand-alone medical device maker worldwide generating nearly $30 billion in revenue in fiscal year 2018. Despite its leadership within the industry, the parent company, which recently received pre-market approval from the FDA for its CareLink SmartSynch cardiac device manager, is moving forward with a five-year cost-cutting program aimed at keeping the company competitive in the global market.
Medtronic recently acquired medical supplier Covidien in a $50 billion deal;
it states that the recent cost-cutting plan was designed to optimize the company’s scope and size, globally, while enhancing customer experience. Overall, Medtronic is looking to save $3 billion by the end of fiscal year 2022.
Employees specifically impacted by this recent job cut produce components for catheters used in surgical procedures. As part of the company restructuring, they will be offered a bonus to continue to work through May 2020, according to company spokesperson Wendy Dougherty. She added that these layoffs do not impact Medtronic’s employees at its coronary and structural heart, aortic, peripheral and venous operations.
Medtronic employs nearly 1,100 people at two sites in Santa Rosa. Earlier this year, an undetermined number of employees were also let go at the company’s Minnesota facility, while its cardiac and vascular divisions, which produce coronary balloons, stents and heart valves, saw additional layoffs across research and development and other sections.
Last year, the cardiac and vascular division reported revenue of $11.4 billion, including nearly $3.5 billion in coronary and structural heart business and $1.8 billion for the aortic, peripheral vascular business. Although these sectors are the largest within the Medtronic group, they are also the slowest to grow.