Layoffs: Medtronic to cut another 500 jobs in hopes of saving $125M per year

September 6, 2012 by MassDevice staff

Medtronic is half-way through a 2012 restructuring plan, expecting to cut another 500 positions in hopes of saving up to $125 million per year.

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Medtronic (NYSE:MDT) is halfway through a 2012 restructuring plan in which the company expects to let go of 1,000 employees from divisions around the world.

The initial 500 positions were cut before the end of July, with another 500 to go before the end of 4th quarter of 2013, according to the company's latest financial report.

The layoffs are designed to save general, administrative and indirect distribution costs from certain business units so that Medtronic can focus its attention in areas where it expects faster growth, such as in emerging markets and new therapies, the medical device company reported.

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Medtronic expects the cuts to save $100-$125 million per year in savings, most of that coming from reduced compensation expenses.

The medtech giant 1st announced the cuts in May in conjunction with its 4th quarter and full-year earnings report, in which the company noted a continued decline in U.S. cardiac rhythm management and spinal products.

The layoffs included 200 from the device maker's cardiac rhythm management division, but the remainder were not identified.

"We are eliminating about 1,000 positions around the company and around the globe," chief financial officer Gary Ellis said at the time. "It's kind of the normal, ongoing thing that goes forward as we shift resources from slower-growing markets to faster-growing markets."

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