Medtronic expects to increase R & D, cut production jobs

One of Sonoma County’s largest employers announced last week
that it will be moving some of its manufacturing operations to
Ireland and Mexico, a move that could cost some Windsor residents
their jobs.
Medtronic, a medical technology company with locations in both
Santa Rosa and Windsor, told its 4,500 Sonoma County employees last
week that it plans on moving some of its manufacturing operations
abroad, and will focus its local facilities on research and
development.
Medtronic has a 6,600- square-foot facility on Cameron Lane in
Windsor, and two Skylane Boulevard facilities near the Sonoma
County Airport that together total 40,000 square feet.
“We realize that this is going to have a serious impact on
people,” said Rob Clark, director of public relations for
Medtronic’s vascular division. “We announced it to our employees
starting on Tuesday. We decided to inform our employees now so they
would understand the direction we’re moving towards.”
That direction involves expanding research and development and
pilot manufacturing operations at Sonoma County facilities while
moving of high volume manufacturing to Ireland and Mexico. The
move, according to Clark, is part of a plan by Medtronic to grow
its business from $750 million to $2 billion in the next five
years.
“If the impression (of this news) is that this business is
getting smaller, that’s the wrong impression,” Clark said. “We’re
getting larger. We’re going to continue to reside in Santa Rosa.
We’re investing heavily in research and development in the next
three to four years, and Santa Rosa is going to be the largest
beneficiary of that spending and growth. By taking these actions we
believe that we’ll really fortify our growth in the next four to
five years.”
Who will be laid off, and when, is still not known. According to
Clark, the Windsor facility should not be affected at all by the
layoffs. The two Skylane facilities house manufacturing jobs,
making layoffs likely at those locations.
A Medtronic employee, who wished to remain anonymous, confirmed
that workers at the Skylane facility were informed last week of the
changes. The worker also said that employees are remaining upbeat
until they get further word about their futures.
Clark said that employees will hear more in the upcoming months,
and he did not believe anyone would be laid off for at least four
months. Those who are let go will be given at least 60 days notice,
and will be eligible for a severance package.