US medical devices giant Medtronic CEO Geoff Martha has written to employees explaining that the company is set to undergo a process of reorganization that will involve layoffs worldwide. The process is likely to mean dismissal for dozens of Medtronic employees in Israel.
In an email to employees Martha said Medtronic had taken a decision, "to position the company for sustainable growth in the future. As you know we are working to trim costs in 2023. We have limited travel, slowed hiring, and offered a US early retirement program but although these efforts have led to savings, we still estimate that we need to reduce our workforce in the coming months. Employees will begin to be notified today and this will continue over the coming weeks or months depending on the country. The impact will vary by team, region and country."
Medtronic has over 1,200 employees in Israel at its headquarters in Herzliya Pituah and various production and R&D centers including in Caesarea (based on the acquisition of Mazor Robotics), Petah Tikva (based on the acquisition of Visionsense), Jerusalem (based on the acquisition of Oridion Medical), Yokneam (based on the acquisition of Given Imaging), Tel Aviv (based on the acquisition of Nutrino), and Herzliya Pituah (based on the acquisition of Super Dimension).
Over the past year, Medtronic's share price has fallen 23%, giving it a market cap of $113 billion, although it rose by 3.94% on Wall Street yesterday after the announcement of the layoffs.
There are no known plans to completely close any of the development centers in Israel.
Published by Globes, Israel business news - en.globes.co.il - on April 20, 2023.
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