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Medtronic Says New Business Plan will Save Billions, Shift Jobs, but Offers Few Details

Overall, the company expects to save the $3 billion by the end of its 2022 fiscal year.

Medtronic Says New Business Plan will Save Billions, Shift Jobs, but Offers Few Details
The company expects to spend between $1.6 billion to $1.8 billion to implement their “Enterprise Excellence Program."
Medical device manufacturer Medtronic announced an initiative Tuesday that it said could save the company $3 billion over the next several years, while also resulting in the eliminating of some positions and the creation of others. 

The company expects to spend between $1.6 billion to $1.8 billion to implement their “Enterprise Excellence Program,” with much of the cost associated with employee training as well as “severance and other termination benefits to be incurred at sites around the world during the next five years,” according to a recent SEC filing. Notably, the company also expects its “overall employee base will remain relatively unchanged,” as new positions will be created while others are cut.

Overall, the company expects to save the $3 billion by the end of its 2022 fiscal year.  

The filing offers little details as to what the plan involves, other than to say it will include integrating manufacturing processes as well as “optimizing” other aspects of the company’s operations.  

Metronic employs about 9,000 people in Minnesota, making it the state’s 18th largest employer. Recent cuts include a 2016 move to outsource some of its phone-based customer service operations to a company in the Philippines, resulting in the elimination of 70 jobs in Columbia Heights, according to the Star Tribune. The company also laid off an unspecified number of employees at its Memphis facility last summer. 

In 2014, when Medtronic moved its global headquarters to Dublin as part of its acquisition of a surgical supply company, it pledged to still create 1,000 jobs in Minnesota over five years. 

The next year, in said it had added 300 jobs in the state, the Star Tribune said. TCB has asked for the latest stats and will update with the company’s reply. 

 
 
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