Some other areas which may have affected profits were funds paid to Johnson and Johnson over patent issues. Amidst the layoffs, they are still hiring in some areas to include sales and research and development. There is also the issue of the Sprint Fidelis wires that need to either be removed or replaced where they are providing the replacement cables.
“Medtronic estimates that the cable has failed in a little more than 5 percent of patients after 45 months of being implanted. But as a preventive measure, some patients with working cables are having them removed”
Medtronic is still one of the world’s largest manufacturer of medical devices and they also have clinical trials in progress for a device that can help migraines. BD
Medical device maker Medtronic said Tuesday it would cut up to 1,800 employees after its fiscal fourth-quarter plunged 69 percent on slipping sales and restructuring and other charges.
Its adjusted earnings matched Wall Street expectations, but shares fell after the company forecast disappointing sales guidance and announced the layoffs.
The company recorded a $27 million restructuring charge in connection with cutting 1,500 to 1,800 jobs, a move aimed at streamlining operations for underperforming units, such as cardiac surgery. About 400 employees already have accepted buyout offers and will leave the company by the end of the month.
The company has lost share of its top-selling implantable defibrillators to rivals like Boston Scientific Corp., after a 2007 recall linked to cracked heart wiring.
The Associated Press: Medtronic to cut up to 1,800 jobs after profit dip
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