Medtronic Restructuring Update

When will everyone realize that Omar does not have your back?

His new Enterprise Excellence program that will save $3 billion by 2022 through "functional and commercial optimization" is a fancy way of saying there are going to be a lot of layoffs coming. Medtronic expects $1.6 billion to $1.8 billion charges by the end of 2022 with 40% to 50% of those associated with employee related costs.

Manufacturing, supply chain and the commercial organization will look vastly different after these changes are implemented. Many plant workers have already been impacted by these changes but those were somewhat expected.

On the other hand, the commercial organization is going to be blindsided. Many are oblivious to it but Omar's value based healthcare initiative is going to change the entire commercial organization as we know it. Org structure and the amount of reps in the field will be nothing like they are today. Count on it. You need to know what's coming.

The next 5 years are going to be tough on a lot of Medtronic families.

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Medtronic plans to cut $450 million to $475 million in costs per year following a restructuring that will tailor its businesses toward specific therapy areas.

Where are the majority of the real cuts happening?

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Medtronic plans to cut $450 million to $475 million in costs per year following a restructuring that will tailor its businesses toward specific therapy areas.

How convenient.

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Medtronic isn't unlike any other company - their reason for being in business is to make money. The fact that they help people while doing so is more incidental these days. The mission is noble, but this is no longer Earl's company.

It's hard to truly help people when the focus is so wide.

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Medtronic isn't unlike any other company - their reason for being in business is to make money. The fact that they help people while doing so is more incidental these days. The mission is noble, but this is no longer Earl's company.

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RIF WEEK IS UPON US IN MULTIPLE DIVISIONS

I think I overheard conversation that it will be big and in 3 waves, contruktors, reg employees then lots of managers on up. Hopefully company store will have discounts soon

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maybe it once was a great company

Not any more

The way it treats its people is wrong. Companies that are great treat their people well

RIF WEEK IS UPON US IN MULTIPLE DIVISIONS

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By automating end-to-end business processes, Medtronic hopes to reduce its number of distribution centers and administrative facilities by 15% to 20%, as well as consolidate its customer service and call centers.

For what parts of the business? Which business units will be affected?

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Omar disappointed at investor day and now the stock is down 1%. Everybody knows that he has a quick trigger when analysts aren't happy...

In case anyone is interested in reading more about Medtronic's Investor Day, we have put together a piece that breaks down each of the business unit's presentations.

Medtechy

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Omar disappointed at investor day and now the stock is down 1%. Everybody knows that he has a quick trigger when analysts aren't happy...

By automating end-to-end business processes, Medtronic hopes to reduce its number of distribution centers and administrative facilities by 15% to 20%, as well as consolidate its customer service and call centers.

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Omar disappointed at investor day and now the stock is down 1%. Everybody knows that he has a quick trigger when analysts aren't happy...

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in reality, Omar doesn't care about the commercial organization. He is a operational leadership (which means stock price). He has already consolidated multiple bags under one management team. Short term win: yes.

But this will set up for long term disaster by losing our leadership's domain knowledge. As an org we can't count on new hires to understand kol relationships, disease states, etc.

Drink every time you hear Omar say "value-based" on the earnings call.

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in reality, Omar doesn't care about the commercial organization. He is a operational leadership (which means stock price). He has already consolidated multiple bags under one management team. Short term win: yes.

But this will set up for long term disaster by losing our leadership's domain knowledge. As an org we can't count on new hires to understand kol relationships, disease states, etc.

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Is this thread supposed to mean there is going to be another restructuring at Medtronic or it already happened?

it means that Shitrak still has no clue how to grow a market leader and will continue to focus on maintaining the bottom line via layoffs and cost cutting to barely maintain stock price & market confidence

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Unfortunately, said Ishrak, "We live in a world where we get paid for our technology with a promise to improve outcomes, not a guarantee, a promise."

While it's a "promise" that is based on believable outcomes, clinical trials and earlier results, Ishrak points out, there's no guarantee within today's healthcare system that the health of a patient will be improved by a given treatment. Improved health requires a whole new structure of support. It's a fee-for-service structure that doesn't support either healthcare objectives or economic sustainability, said Ishrak.

The answer, Ishrak proposes, is designing a system of value-based healthcare where companies get paid for the outcome, not the device, diagnostic process or the treatment method and in which the benchmark of efficacy meets that expectation.

Is this thread supposed to mean there is going to be another restructuring at Medtronic or it already happened?

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