Layoffs ahead for Medtronic's spinal business

April 15, 2013 by Arezu Sarvestani

Medtronic confirms with today that the company is expecting layoffs as a result of restructuring planned for its spinal devices business.

layoffs illustration

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.

Sign up to get our free newsletters delivered right to your inbox.

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 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 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.