Recently, Medtronic Inc. (NYSE:MDT) beefed up with strategic acquisitions totaling more than $1 billion. Now it's cutting about
1,500 to 1,800 jobs by the end of June
as profits dip.
The medical device giant, like others, is navigating the economic gloom by boosting its strong points and cutting elsewhere. Earlier this year, the Minneapolis
company acquired:
- Ablation Frontiers Inc. for about $225 million,
- CoreValve Inc., a developer of aortic-valve replacement products, for about $700 million, and
- transcatheter heart-valve technology company Ventor Technologies Ltd. for about $325 million.
Medtronic's earnings fell in line with Wall Street predictions, but its guidance forecast forced some selling on the exchange as its
stock was down about 7% in late-afternoon trading Tuesday. As it announced cutbacks, Medtronic also announced a
strategic marketing alliance with Eli Lilly and Co. (NYSE:LLY) to help people with diabetes manage their blood sugar using insulin therapy.
Other firms we've recently written about that are growing while downsizing include:
Nokia announced
several hundred more job cuts on Tuesday in addition to the thousands previously announced. -
Baz HiralalGo to the Medtronic story
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