Layoffs are a harsh reality in any industry, but in 2024, the medtech sector saw some of its largest and most debated workforce reductions.
While companies cite reasons such as restructuring, financial pressures and changing market dynamics, these layoffs often spark discussions about accountability, innovation and employee welfare.
In this blog, we’ll spotlight some of the major and most impactful layoffs in the medtech industry, exploring the who, why and what next.
1. Philips
Why It’s on the List: The sheer scale of layoffs.
Starting in 2022, Philips announced plans to cut 10,000 positions globally as part of a multi-year restructuring initiative. By mid-2024, the company had already reduced 9,000 positions.
The savings from these job cuts, along with a substantial insurance payout of approximately $567 million related to Respironics product liability claims, were directed toward offsetting recall-related costs. Additionally, Philips Respironics agreed to a $1.1 billion settlement for personal injury and medical monitoring claims, with a provision of approximately $1 billion recognized in the company’s first quarter report.
While Philips achieved significant cost savings, it also faced criticism over its handling of the recall crisis and employee communications.
2. Medtronic
Why It’s on the List: Repeated layoffs and high visibility.
The world’s largest medtech company confirmed global workforce reductions in 2024, following multiple rounds of layoffs in prior years. Medtronic’s restructuring affected employees across various segments, with cuts designed to optimize its global operations. The company’s operational headquarters are located in Minneapolis, Minnesota.
According to The Minnesota Star Tribune, layoffs impacted multiple facilities in the US and beyond, with manufacturing and administrative roles particularly affected.
3. Edwards Lifesciences
Why It’s on the List: Impact on key markets.
In September 2024, Edwards Lifesciences reduced its workforce by 540 employees, accounting for 3% of its global team. According to MassDevice, the layoffs were partly attributed to slower-than-expected adoption of transcatheter aortic valve replacement devices.
Additionally, Edwards announced plans to sell its critical care business, further signaling a strategic refocus amidst market challenges.
In parallel with these workforce reductions, Edwards announced a $750 million stock buyback program, signaling confidence in its long-term strategy despite short-term market challenges.
4. Hologic
Why It’s on the List: Streamlining operations with facility closures.
Hologic, a leader in women’s health technologies, announced layoffs in 2024 as part of a broader effort to streamline its operations. The company closed its Danbury, Connecticut facility, eliminating 86 jobs.
The closure was attributed to operational inefficiencies and a strategic refocus on more profitable and high-growth areas of its business, as noted in CT Insider.
5. Siemens Healthineers
Why It’s on the List: Global restructuring amid digital health focus.
Siemens Healthineers announced layoffs in 2024 as part of a broader restructuring initiative across multiple Siemens sectors. This included eliminating approximately 300 jobs at its New Jersey facility and additional positions globally.
Specific to Healthineers, the company also announced the closure of its Fast Track Diagnostics facility, resulting in layoffs tied to a strategic shift away from certain diagnostics operations.
6. Masimo
Why It’s on the List: Strategic missteps and integration challenges.
Masimo’s 2024 layoffs affected 75 employees at its Irvine, California headquarters. These reductions followed the company’s over $1 billion acquisition of Sound United, a consumer electronics company.
At the time, analysts viewed the purchase as a potentially costly distraction from Masimo’s core focus on non-invasive monitoring technologies, and the financial strain from the acquisition prompted operational downsizing.
7. Illumina
Why It’s on the List: Legal battles and workforce reductions.
Early in 2024, genomics leader Illumina laid off approximately 455 employees, or 5% of its global workforce, including 111 employees at its San Diego location. These layoffs were part of a cost-saving initiative aimed at addressing declining revenues and legal expenses tied to the company’s $7.1 billion acquisition of cancer detection company Grail.
The deal, completed in 2021 despite regulatory objections, faced antitrust concerns from the FTC and European Commission (EC). In 2024, the European Court of Justice annulled the approximately $453 million fine imposed by the EC, offering partial relief, though US regulatory challenges persist.
8. Smith & Nephew
Why It’s on the List: Supply chain-driven reductions.
Smith & Nephew cut 150 jobs in 2024 as part of efforts to simplify operations and navigate supply chain disruptions. The company’s orthopedics segment faced particular challenges, with delays and increased costs affecting its ability to meet demand.
According to investor feedback highlighted by MassDevice, the underperformance of its orthopedics division led to calls for the company to consider breaking up its business.
9. Zimmer Biomet
Why It’s on the List: Restructuring for efficiency.
Zimmer Biomet’s 2024 layoffs, part of a 3% workforce reduction announced in late 2023, eliminated 540 global jobs. The cuts were part of ongoing global restructuring efforts aimed at streamlining operations and reducing costs. $124.4 million was allocated to restructuring and cost reduction initiatives during the first quarter of 2024.
Zimmer Biomet expects the restructuring to simplify its organizational structure, enabling closer alignment with customers’ needs and yielding approximately $200 million in run rate savings by 2025.
10. Nevro
Why It’s on the List: Demand-driven adjustments.
In January 2024, Nevro laid off 63 employees, or 5% of its workforce, citing declining demand for its spinal cord stimulation devices. The market-driven decision came as competition increased and reimbursement challenges affected the company’s ability to maintain its market share in pain management technologies.
According to Nevro’s fourth quarter earnings report of 2024, a $3.3 million increase in cash, cash equivalents and short-term investments were a reflection of the company’s “restructuring efforts and disciplined working capital management.”
What These MedTech Layoffs Mean
For employees, these layoffs represent more than just job losses. They signal uncertainty, disruption and the challenge of navigating an industry in flux.
For companies, workforce reductions can be a double-edged sword: they offer opportunities to refocus resources and streamline operations but often come at the cost of public backlash and employee trust.
Aside from the companies listed, several other industry giants, including Johnson & Johnson MedTech, Boston Scientific and Alcon, also underwent significant restructuring efforts. Boston Scientific laid off 138 employees with the closure of Silk Road, a cardiovascular medical device company it acquired in 2024.
Moving into 2025, the medtech industry will likely continue prioritizing where its funds are headed, balancing innovation with the realities of economic pressures and evolving healthcare needs.
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