A representative for Medtronic today has confirmed that the orthopedics company will be reducing its Warsaw workforce leaving approximately 50 full-time workers without jobs.
Eric Epperson, senior director of communications for the company, told StaceyPageOnline.com today that Medtronic made its employees aware of restructuring plans on April 4 saying changes would occur as the company begins its new fiscal year. “The details are not yet available, but yes, approximately 50 employees will be affected,” said Epperson.
In a statement released by Medtronic Spine it is noted, “The restructuring is intended to set a foundation for the business to return to growth and consistently achieve our financial goals. We are addressing the near-term cost and pricing challenges facing our business, while also responding to the long-term dynamics of the global healthcare environment and changing needs of our stakeholders.”
Epperson said the medical device tax is “one small piece” that is driving the decision. Other factors include “increased pricing pressure, more complex customer device purchasing processes, expanded governmental review times/requirements for product approvals,” according to the company statement.
Epperson confirmed that an estimated 50 full-time workers from Warsaw will be given pink slips, along with some type of severance package and job relocation assistance. He said the jobs affected will be a combination of production and administration and will be eliminated by the first week of May.