Layoffs ahead for Medtronic’s spinal business (MassDevice)
Medtronic confirms with MassDevice.com today that the company is expecting layoffs as a result of restructuring planned for its spinal devices business.
Medical device company Medtronic (NYSE:MDT) confirmed today that there are layoffs ahead for its spinal business, affecting an undisclosed number of workers at various locations.
The medtech titan doesn’t plan to release details until next month, but rumors are already swirling that a Warsaw, Ind., spinal facility may lose as many as 50 workers.
Medtronic spokeswoman Cindy Resman didn’t confirm that report, but noted that the company hopes to cut overall costs by 5% through a variety of actions, including “targeted employee reductions in certain business functions and locations.”
“Like most companies, we will continue to evaluate our markets and organization structure to look at areas where efficiency can be improved throughout our business,” Resman told MassDevice.com in an email. “This may require us to shift resources from low growth to high growth areas to optimize performance and are a normal course of business for any organization.”
“The medical device tax is part of the long list of factors and business pressures we consider as we plan for our budgets and investments,” she told us. “It is not accurate to state that we have layoffs planned directly related to the medical device tax, but instead to acknowledge that is among the many business pressures we must account for in our planning.”
It wouldn’t be the 1st time Medtronic’s spinal workers have been on the chopping block. Around the same time last year the company reported sluggish growth in its spinal and cardiac rhythm management units, and warned that workforce cuts may be on the way.
The cuts, Resman noted, are not directly tied to the medical device tax, although the new levy factors among issues facing the company as it moves forward.