Layoff Race: Medtronic vs. Covidien

Last week, QMed reported on massive layoffs at Covidien. Covidien's layoffs were estimated to save the company $250 to $300 million by 2018. While Covidien didn't disclose the total number of employees who would receive pink slips, the company's estimated savings could indicate a significant number of job cuts.

Earlier this year, Medtronic announced that it would be sending out a flurry of pink slips, too. In total, Medtronic will axe 2,000 jobs, hoping to achieve $225 million in savings. In total, 500 of its job cuts would originate in Minnesota, the company's home.

For Medtronic, layoffs took place in an effort to shift resources from areas that were experiencing poor sales to areas with future growth potential. In particular, Medtronic CEO Omar Ishrak believes that chronic pain management devices could be a strong path forwards. For Medtronic, most cuts took place in its spinal and cardiac business.

For Covidien, some of the same factors led to its layoffs.

"The plan will focus on creating efficiencies by, among other things, reducing corporate expense, expanding the use of shared services in low-cost locations, outsourcing services where appropriate, streamlining the Company's organizational structure, consolidating manufacturing locations, consolidating and optimizing distribution centers and expanding low-cost country sourcing," wrote the company in a regulatory filing.