Jeff Martha, CEO of the US medical device giant, wrote to employees explaining that the company will undergo a reorganization that will include layoffs around the world. The process likely means firing dozens of Medtronic employees in Israel.
In an email to employees, Martha said Medtronic made a decision, “to position the company for sustainable growth in the future. And as you know, we’re working to reduce costs in 2023. We have limited travel, a hiring slowdown, and our offer to the US at a time Early Retirement Program But although these efforts have resulted in savings, we still appreciate that we need to reduce our workforce in the coming months. Notification to staff will begin today and this will continue over the coming weeks or months depending on the country. The impact will vary by team, region and country.” .
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Medtronic has more than 1,200 employees in Israel at its headquarters in Herzliya Petah and several 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, though it rose 3.94% on Wall Street yesterday after the layoffs were announced.
There are no known plans to completely shut down any development centers in Israel.
Published by Globes, Israel business news – en.globes.co.il – on April 20, 2023.
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