- Jim Hammerand and Katharine Grayson
- Minneapolis / St. Paul Business Journal
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Medtronic Inc. disclosed 40 Minnesota job cuts but isn’t providing many more details.
The eliminated positions are in Fridley, the headquarters for its corporate functions and neuromodulation business, and in Mounds View, where its cardiac rhythm disease management and structural heart divisions are based.
The cuts were covered by a charge Medtronic recorded during its 2014 fiscal fourth quarter, which ended April 25, a spokeswoman said. Medtronic (NYSE: MDT) reported a $75 million restructuring charge when it released its earnings in May, but didn’t outline any job eliminations.
“While we’ve had to make some organizational changes, we’ve also added jobs. Our current employee number is more than 49,000 [worldwide]. Last year we reported 46,000,” spokeswoman Cindy Resman wrote in an email.
The company notified the Minnesota Department of Employment and Economic Development (DEED) of the cuts in April, but did not say when they would happen. The state usually gets layoff notifications weeks or months before employees are terminated.
DEED recently disclosed the cuts in an update to its Dislocated Worker Program report but had no other details, an agency spokeswoman said.
Medtronic, which employs about 8,000 Minnesotans, pledged to create 1,000 Minnesota jobs after its $43 billion acquisition of Ireland-based Covidien closes at the end of this year or in early 2015. However, it hasn’t said how it plans to do so.
From 2011 through 2013, the company shed 1,000 Minnesota jobs, or about 11 percent of its local workforce.
Cardiac rhythm disease management is Medtronic’s largest individual business by revenue, generating nearly $5 billion during the company’s fiscal 2014. However, it hasn’t grown substantially in recent years.
Medtronic plans to combine its endovascular business with a similar Covidien business following the acquisition, a move that could lead to more cuts at Covidien’s Twin Cities operations, based in Plymouth.
Jim Hammerand reports on Twin Cities breaking business news for MSPBJ.com and manages online features and social media.
Katharine Grayson covers med tech, clean tech, technology, health care and venture capital.
