Medtronic will shutter its Santa Rosa facility that produces coronary stents and other heart-related products over the next two years as the device maker also looks to restructure its cardio business.
The closure of the facility, which has operated at the site for almost 30 years, is expected to affect about 370 employees, with layoffs scheduled to begin a year from now and end in spring 2028, the company said.
“Medtronic regularly reviews its global operations to ensure we continue to meet the evolving needs of patients and healthcare providers while positioning the company for long-term growth,” Justin Paquette, a Medtronic spokesman, told Fierce Med Tech in a statement. “Following this review, we have made the difficult but strategic decision to close our Santa Rosa site."
Separately, the company said it created a Cardiovascular Surgery business unit as part of its ongoing restructuring that was triggered by a push from an activist investor to ramp up its efficiency. Part of the restructure includes Medtronic spinning off its $2.8 billion diabetes division into an independent company.
As part of the effort, it also recently combined its structural heart, coronary, and renal denervation businesses to form Interventional Cardiology Therapies (ICT) that “will help us advance our strategy in these critical business areas,” said Paquette.
Medtronic’s structural shakeup began last summer, after activist investor firm Elliott Investment Management took a stake in the company. After the two sides held what was described as “constructive dialogue,” Medtronic agreed to both expand the size of its board of directors and begin drilling down on cutting costs and watching for possible M&A deals.