Medtronic ($MDT) is halfway through its plan to cut 1,000 jobs, and the company said in a regulatory filing that it will save between $100 million and $125 million a year once it's through.
The device giant canned about 500 employees as of July 27, the company said, following through on a plan it announced in the spring. Medtronic expects to cut the remaining 500 jobs by the end of the 2013 fiscal year, the company said in a regulatory filing.
But those staffing cuts carry short-term costs. Medtronic reported $66 million in employee-termination costs last quarter, part of a $118 million restructuring charge. Before that, Medtronic took an $87 million charge tied to 250 layoffs in the third quarter of fiscal 2012.
Despite the immediate layoffs, Medtronic is eyeing a net staffing increase, saying in May that it will add 1,500 jobs around the globe in 2013 fiscal year, focusing largely on emerging markets. Medtronic has already seen success overseas, with its emerging markets revenue jumping 9% last quarter to $438 million. And the company has no intent on slowing down, opening an R&D shop in Shanghai last month and keeping its eyes peeled for potential acquisitions in China, Medtronic leadership has said.
- here's Medtronic's 10-Q
- get more from the Star-Tribune