Medtronic Cutting 230 Jobs from Its Spinal Business
Medtronic, Inc., is cutting 230 jobs worldwide from its Memphis-based spinal division.
The company’s spinal division has roughly 5,600 employees, although it does not employ a work force in Minnesota, and none of the cuts will affect Twin Cities employees, according to Cindy Resman, a spokeswoman for Fridley-based Medtronic. About 60 of the cuts will occur in Memphis, she said.
“Like most companies, we will continue to evaluate our markets and organization structure to look at areas where efficiency can be improved throughout our business,” Resman said in an e-mailed statement. “This may require us to shift resources from low-growth to high-growth areas to optimize performance and are a normal course of business for any organization.”
The employee reductions are part of a larger effort to cut costs by about 5 percent in the company’s spinal business, said Resman, who stressed that the company also continues to add jobs. Medtronic currently has 452 jobs posted in its careers website, including some positions in its spine business, she said.
Medtronic’s spinal business is one of four divisions that together comprise the company’s restorative therapies group; the other three businesses pertain to neuromodulation, diabetes, and surgical technologies.
For the quarter that ended January 25, the latest for which financial information is available, Medtronic reported roughly $1.9 billion in revenue for its restorative therapies group, up about 3.5 percent from the same period in 2012.
Meanwhile, revenue for its cardiac and vascular group—which includes the company’s cardiac rhythm disease management, coronary, structural heart, and endovascular businesses—climbed 2 percent to $2.1 billion.
Medtronic has roughly 45,000 employees worldwide, including 8,000 in the Twin Cities. It is among Minnesota’s 10 largest public companies based on revenue, which totaled $16.2 billion in the fiscal year that ended April 27, 2012.