SANTA ROSA -- Third-quarter revenue for Medtronic Inc.'s Santa Rosa-based CardioVascular business grew 7 percent to 8 percent, and total company revenue increased 3 percent. However, Medtronic today announced plans to trim its total workforce by 1,500 to 2,000 positions, or by 4 percent to 5 percent, to "align its cost structure to current market conditions and continue to position Medtronic for long-term sustainable growth."
According to Medtronic spokesman Brian Henry, cuts will be made across the workforce and it's premature to comment on where they will be made. The company employs about 800 in Santa Rosa.
"However, we will continue to invest in areas that are growing, and scale back in areas that are slow," said Mr. Henry.
CardioVascular quarterly revenue was $774 million. Revenue growth was driven by "solid performance" in all businesses, particularly in emerging markets, where revenue growth was 30 percent compared to the same period in the prior year, according to the company.
CardioVascular's Coronary and Peripheral, Structural Heart, and Endovascular businesses grew worldwide revenue 4 percent, 13 percent, and 12 percent, respectively, on a constant currency basis.
While the stent market continues to experience year-over-year declines, Medtronic gained share with its highly deliverable Integrity platform. The company’s U.S. market share in bare metal stents was up nearly 9 percentage points compared to the same period in the prior year.
Structural Heart revenue was driven by continued solid growth in transcatheter valves as well as revenue from the recent acquisition of ATS Medical.
Growth in Endovascular revenue was driven by the U.S. launch of the Endurant stent graft for the treatment of abdominal aortic aneurysms (AAA).
As for the companywide restructuring, it will occur through a combination of cost-saving measures, tighter expense management, and voluntary programs to minimize layoffs, according to the company.
Medtronic's stock price at the close of trading Tuesday was $40.21, a decrease of $1.06 a share, or 2.6 percent, below the closing price Friday.