Medtronic (NYSE:MDT) is about ⅔ of the way through a restructuring program that includes layoffs for 2,000 workers worldwide, company officials said today, with about half of the job cuts coming in the U.S.
Fridley, Minn.-based Medtronic earlier today reported Q4 profits of $969 million, or 95¢ per share, on sales of $4.56 billion during the 3 months ended April 26, for a bottom-line slide of 2.2% on top-line growth of 3.8%.
For the full year Medtronic reported profits of $3.47 billion, or $3.37 per share, on sales of $16.59 billion, representing a profit slide of 4.1% on sales growth of 2.5%.
CFO Gary Ellis told analysts during a conference call that roughly ½ of the layoffs will take place in the U.S. as Medtronic consolidates its manufacturing operations, the Pioneer Press reported. The company is about ⅔ of the way through the job cuts plan and is actually adding positions in some areas, a spokeswoman told the newspaper. The cuts are aimed at paring $200 million to $225 million from Medtronic’s annual budget, Ellis said.
Although the job cuts include 500 in Minnesota, Medtronic has already added 160 positions in the Land of 10,000 Lakes and has opening for another 130 workers there, according to the newspaper. Medtronic did not immediately respond to a question about the scale of the cuts and new hiring in the U.S. overall.