The layoffs — many involving engineers and designers — are permanent and go into effect Jan. 13, 2025, Masimo informed the California Employment Development Department in a WARN letter dated Nov. 14, 2024.
The layoffs at the health tracking and digital health pioneer come just months after founder and then-CEO Joe Kiani resigned. Kiani stepped down after a September shareholder vote that ousted him from the position of board chair following a lengthy proxy battle between Masimo and Politan Capital Management.
Former Johnson & Johnson executive Michelle Brennan is presently running the company as interim CEO. Last month, the company reported Street-beating third-quarter results and raised its full-year EPS guidance.
In the statement shared with MassDevice by a spokesperson for the company, Masimo said: “Our focus is on positioning Masimo to achieve its significant long-term growth potential. We are allocating resources to fewer projects, concentrating on sizable market opportunities that address clear unmet needs, and ensuring we can continue to invest heavily in innovation. Unfortunately, this has also meant shifting and reducing headcount in certain areas to better position the company to meet our goals and be able to bring lasting benefits to the patients we serve.”
MassDevice and Medical Design & Outsourcing‘s 2024 Medtech Big 100 report lists Masimo as the 53rd largest medical device company in the world, with more than $2 billion in annual revenue and 4,000 employees.
Overall, the medical device industry has been closing the year with a string of layoffs as companies seek to refocus to better manage a host of challenges: operational problems at major healthcare provider customers, supply chain snarls from climate change and more, inflation and high interest rates, and the economic downturn in China.
MassDevice has reported on more than 22,000 medtech job cuts across the industry since mid-2022. (Here’s the full roundup.)
