Medtronic to Double Chinese Workforce (written by Sander Duncan @ HealthPointCapital)
Medtronic sees a bright future in China, seeking to expand its presence in the rapidly-growing Chinese medical device market. China Daily, an English-language newspaper in Singapore, recently reported that Medtronic plans to double its workforce in China to 2,000 employees in a wide range of positions. The company expects to meet this headcount goal by 2016. Notably, this news comes just six months after Medtronic announced its intention to layoff 1,500 to 2,000 workers globally in an effort to sustain long-term growth.
Expanding its workforce in China while cutting jobs in other regions is among several indications that Medtronic seeks to leverage China for future growth. China Daily noted that in March, Medtronic’s new Asia-Pacific headquarters and R&D center opened in Shanghai. Jean-Luc Butel, EVP and Group President of Medtronic International, commented that the R&D center, while in its nascent stages, will “serve China at first and eventually the global network.” In December, 2007, Medtronic invested over $220 million in Chinese device-maker Weigao, garnering a 15% equity interest in Weigao and a 51% share in a new orthopedic joint venture with the company. It was Medtronic’s first OUS joint venture.