Medtronic began "significant cost reductions" in recent months, driven by macroeconomic challenges such as inflation and currency exchange rates that many companies are facing.
"We're working through it right now. We haven't disclosed an amount," said Karen Parkhill, Medtronic's chief financial officer, in an interview with the Star Tribune. "It's important that we look across our full cost structure and reduce spending everywhere that we can."
The company disclosed the cost reductions during a conference call with stock analysts to discuss the company's third quarter fiscal results, released Tuesday morning. The company's net profit of $1.2 billion was down 17.3% compared with the same period a year ago.
Medtronic CEO Geoff Martha said after the call that cutting sales and marketing costs in China is one example of where expenses are being trimmed for the medical device company.
The efforts to cut costs will continue for the rest of the company's fourth quarter and into the next fiscal year, Parkhill said.
Spokeswoman Erika Winkels declined to specify if any layoffs have already taken place. "Reducing the number of employees is a last option," she said.
Medtronic reported earnings per share of 92 cents for the quarter ended Jan. 27, down 16.4%. Investors focused on the company's adjusted earnings per share of $1.30, which topped analysts' expectations by 3 cents.
Looking ahead to fiscal 2024, the company faces similar challenges.