Medtronic’s Financial Report Coincides With Job Losses Notice

In short

In the same week that the device giant Medtronic announced better than expected financial results including headline items like a 28% year-on- year quarterly earnings increase, it has also been revealed that the company is to shed around 1000 jobs.

The news, covered by Minnesota news vehicle Twin Cities.com was disclosed on Tuesday, May 22, as part of the medical device company’s release of fourth-quarter financial results.

Background

Despite the overall picture being a positive one for Medtronic, with successful recent acquisitions and product launches contributing to its healthy financial reports, what is clear is that not all divisions, product areas and geographies are similarly positive. International sales are generally outstripping US domestic sales, and emerging markets in particular are seeing some of the biggest ramps. Product-wise the troubled Infuse story is still impacting sales as are more recent problems with implantable cardioverter defibrillator leads. The staffing reductions are no doubt also in part a forward-looking move therefore as the company shifts focus to OUS markets and new products.

Company comments

“We are eliminating about 1,000 positions around the company and around the globe,” said Gary Ellis, the company’s chief financial officer, in an interview Tuesday. “It’s kind of the normal, ongoing thing that goes forward as we shift resources from slower-growing markets to faster-growing markets.”

“Most of the employees that are affected have been communicated with,” Ellis added.

Source: Medtronic Inc., Twincities