Medtronic Inc. plans to reduce its global workforce in the coming fiscal year, CEO Bill Hawkins said at an employee meeting Tuesday. He did not offer specifics.
Medtronic to cut global workforce, CEO says
Medtronic said it needs to reduce expenses in order to invest in innovation
February 25, 2009 at 4:22AM
Medtronic, which makes pacemakers, diabetes pumps and devices used in spine surgery, said more details will be provided in May, when the company's new fiscal year begins.
The Fridley-based company employs 38,000 people worldwide, about 8,000 of them in Minnesota.
Earlier this month, Medtronic reported quarterly results that beat Wall Street expectations. However, company executives said some of its businesses may be less resilient in the current economic slump, especially if they involve medical procedures for which patients must pay an insurance copay or deductible.
Medtronic said in a statement it already has implemented a number of initiatives to reduce expense growth, including eliminating merit-pay increases for all employees. Executives also took a 5 percent pay cut, spokesman Steve Cragle said.
The company said it needs to restructure and downsize to ensure it can "continue to invest in innovation and research and development."
Last year, Medtronic pared about 1,100 jobs around the globe, including about 350 positions in Minnesota -- then the largest layoffs initiated by the medical technology giant in at least five years.
JANET MOORE
While the state posted overall job growth for the third consecutive month, the Department of Employment and Economic Development plans to host in-person and virtual factory tours to spark interest in the industry during October’s Manufacturing Month.
