Medtronic to save $3B by 2022 in new restructuring plan: 5 things to know

Spinal Tech

Medtronic presented a plan to restructure the company at the J.P. Morgan Healthcare Conference and reported some of the details in a Securities and Exchange Commission filing, according to the Minneapolis/St. Paul Business Journal.


Here are five things to know:


1. The company will create new jobs and allocate resources to support growing market needs through the restructuring program. The company currently has 9,000 employees in Minnesota, making it the state's largest employer.


2. The program aims to improve productivity and integrate manufacturing systems, according to the report. The restructuring will add $1.6 billion to $1.8 billion in charges over the next five years, and half of the charges are expected to be employee-related costs.


3. Called the "Enterprise Excellence Program," the company's leaders hope to drive margin improvement and invest in strategic growth initiatives as a result.


4. Medtronic hopes the restructuring will result in more than $3 billion in annual growth savings by the end of fiscal year 2022.


5. An undisclosed number of employees will feel the impact, however, Medtronic said the total employee count is expected to hold steady.


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