Medtronic Inc. (NYSE:MDT), already looking to reshape its business by laying off thousands of workers, is making another big streamlining move: Canceling contracts worth $2 billion a year with Novation LLC, a group purchasing organization.
The Fridley, Minn.-based medical device maker announced its restructuring plan as part of its third-quarter results release earlier this week. Now Novation says Medtronic is putting the kaibosh on five deals covering cardiovascular and orthopedic products.