Medical device maker Medtronic Inc. (NYSE: MDT) said it plans to lay off up to 2,000 workers in connection with a restructuring program in response to sluggish sales of some of its products.
As of 2:15 p.m. (EDT), MDT shares are down 2.62 percent to $40.18 per share.
We are restructuring our business and leveraging our global infrastructure to be more in-line with market conditions, said chief executive Bill Hawkins in a statement.
(Hawkins will step down from his position in April after three years in the CEO’s chair).
The company said the job eliminations are aimed at achieving long-term sustainable growth and will cut its workforce by 4 to 5 percent.
Chief financial officer Gary Ellis said the job cuts will be company-wide, with a particular focus on administrative, back-office costs. That is where we think there is probably the biggest opportunity, he said.
A charge related to the staffing reduction will be recorded in the fourth quarter.
The company also reported third quarter earnings of $924 million, or 86 cents per share, slightly above Wall Street estimates.
However, sales of defibrillators and pacemakers to $1.22 billion for the quarter.
The company also reduced its earnings forecast for the full fiscal year.