Medtronic to Cut 220 Jobs from CRM Division

Medtronic has confirmed that it will lay off 220 employees across the United States in the process of “restructuring” its cardiac rhythm disease management division, which is based in Mounds View, Minn. The company has not yet disclosed what type of jobs will be cut.

The company seems to be moving more toward its global footholds. This doesn’t necessarily mean automatic downsizing within the United States, but this block of layoffs is could indicate otherwise. In an interview on April 25, Medtronic CEO Omar Ishrak pointed to “huge opportunities” in global markets. “I think there’s plenty of growth available just by addressing the segment that can afford the treatment and is simply not getting it,” he told Minnesota Public Radio. “In fact, that opportunity alone is several billion dollars. If we systematically approach that, we can, I think quite confidently, structure a path to 20 percent-plus growth on a year-over-year basis in most of these emerging markets.”

Medtronic executives have also recently been suggesting an effort to diversify from cardiac devices and focus more on other device sectors.
Piper Jaffray & Co. analyst Thomas Gunderson told the Star Tribune that the layoffs look like an effort by Ishrak to put his stamp on the company’s largest division, one that has struggled with slumping sales. “This is just ongoing belt-tightening in tough economic times,” Gunderson said.

For its part, Medtronic is trying to make the transition as painless as possible for affected employees.

“Medtronic is supporting employees who are involuntarily separated with benefits and transition assistance, including external outplacement assistance services, access to employee assistance programs, medical benefit subsidies and severance pay,” company spokesperson Chris Garland told Medical Product Outsourcing.

Based on revenue, Medtronic is one of the global powerhouses in the medical device industry, and Minnesota’s seventh largest public company. In its home state alone, it employs approximately 8,000 people. The last fiscal year brought in $15.9 billion in revenue for the company.