Who Is Hiring and Who Is Firing in Medtech

After a period of contraction during the Great Recession, the medical device industry overall is now faring better. Yet some U.S. medtech companies have continued to layoff staff in 2014 and 2015.

Brian Buntz

Hiring: Medtronic

Medtronic added 43,000 jobs within the past year, in large part as a result of its acquisition of Covidien. But the company has had a hiring trend as well, boosting its employee numbers by 3500 (or 7%) between 2013 and 2014, according to a report from EP Vantage. In the past five years, the company has added nearly 50,000 of employees to its rosters.

Hiring: Essilor

French ophthalmologic specialist Essilor has added 23,273 employees in the past five years. In 2014, it added 2903. Also impressive is that the company's stock has increased from the EUR48 range five years ago to more than EUR113 today. In this time period, the company, the world's biggest lens maker, has also built an Innovation & Technology Center in Dallas, TX, while setting aside more than $1 billion for acquisitions.

Hiring: Baxter International

Baxter has added 16,300 employees to its payroll in the past five years, according to EP Vantage. In 2012, the company announced a $1-billion expansion to build a new plant near Atlanta, GA that would employ 1500 workers. Last year, the company announced that it planned on a $300 million expansion of a facility in Opelika, AL, which would add 200 employees. In 2015, the company shared plans to add 25,000 sq-ft to a plant in Mountain Home, AR.

Hiring: B. Braun Melsungen

In the past years, B. Braun (Melsungen, Germany) has added 14,513 employees, bringing its 2014 headcount up to 54,017. While the company has announced a series of expansion initiatives, in 2014, it announced that it would be putting the brakes on a plan for a new headquarters in Lehigh Valley, PA, blaming the medical device tax for that decision. "The medical device tax stopped that project," CEO Caroll Heinz Neubauer told Lehigh Valley Business. "We decided to put that project on hold." Yet the company continues to expand its medical manufacturing operations. Last year, the company added 4128 employees. In recent years, the company has made similar expansions on its home turf in Germany to keep up with the strong demand for syringes.

Hiring: Stryker

Stryker, which routinely scores well in best-places-to-work roundups, added 7418 employees last year, bringing its headcount up to 26,000. While the company has layoffs in the past five years as well, the company has also invested in expansions. It has, for instance, dedicated  $30 million to expand its R&D operation in Ireland.

Firing: Alere

The past several years have not been kind to Alere (Waltham, MA). Last year, the company cut 7800, or 44%, of its workers. In 2013, it faced a shareholder rebellion and faced charges from an activist shareholder alleging that the company had made ruinous financial decisions.

Over on the employer rating site Glassdoor.com, the company has a 2.5 out of 5 rating, with frustrated employees stating the company offers "Twice the work with half the staff" and "very low pay."  

Firing: DJO Global

Diversified device company DJO Global (Vista, CA) has cut 530 jobs in the past year. While the company posted modest sales growth in the first quarter of 2015, the company continues to cut employees, most recently product assemblers and machine operators in Minnesota. The company's Recovery Sciences has been hard hit recently, announcing significant layoffs last year. Overall, the company has wrestled with changes to Medicare reimbursement, which has decreased its sales potential.

Firing: Mindray Medical International

Mindray (Shenzhen, China) cut 400 employees last year, according to EP Vantage. Its 2014 headcount was 7500. The company isn't faring well financially in 2015 either. The company has revised is expecting its adjusted net income for 2015 to come in 30% last year's numbers, according to a recent report from the Wall Street Journal. One factor hurting the firm has been China's ailing economy and the weakness China's Yuan currency.  

Firing: Hologic

Last year, Hologic cut 264 jobs, and had a employee headcount of 5351. Among those adversely affected were employees in its German Hitec Imaging operation. The layoffs didn't come cheap. A regulatory filing reveals that the cuts ended up costing the company $51.7 million, when factoring in severance, benefits, and other costs. The company's fortunes appear to be brightening this year.

Firing: Dentsply International

Dentsply International cut 200 employees of its 11,600 workers in 2014. The company continues to make restructuring plans, having recently announced a plan to change its lab business, which it hopes will improve its ability to formulate innovative prosthetic materials.