268 Local Medtronic Workers Part of Worldwide Cuts
Two months after Fridley-based Medtronic, Inc., announced that it would reduce its global work force by 4 to 5 percent, the medical device giant revealed that 268 of its 8,000 employees in the Twin Cities are affected by that reduction.
Medtronic spokesman Brian Henry on Thursday told Twin Cities Business that about 700 employees accepted voluntary retirement or early separation offers that were made available in February. In addition, about 1,700 employees from the entire company-across all levels, geographies, and business segments-were laid off.
Henry said that about 300 of the eliminated positions will eventually be refilled, meaning that the net employee loss will be about 2,100.
Employees being laid off will receive standard severance packages based on the number of years they worked for the company, Henry said.
When Medtronic announced the layoffs in February, the company said that job cuts will enable it “to align its cost structure to current market conditions and continue to position Medtronic for long-term sustainable growth.”
The restructuring effort through which the layoffs are occurring also includes other cost-saving measures, tighter expense management, and “voluntary programs to minimize layoffs,” the company said in February.
Medtronic is the world's largest medical device company and Minnesota's seventh-largest public company based on revenue, which totaled $15.8 billion in its most recently completed fiscal year.
A few weeks after Medtronic initially announced its cuts, Natick, Massachusetts-based Boston Scientific Corporation also reportedly announced layoffs due to tough market conditions.
According to media reports, the layoffs will affect 5 percent of employees, including 2 to 3 percent of sales people within the clinical division of the company's cardiology, rhythm, and vascular business-which includes operations in Arden Hills, Maple Grove, and Plymouth. Boston Scientific employs about 5,000 in Minnesota.