MJP –
A medical company has just revealed surprising staff reductions in Minnesota as part of a strategy to streamline operations by consolidating service centers and production facilities.
ICU Medical is getting ready to shut down a service and distribution center in Oakdale, Minnesota, and dismiss all 83 workers at that site, as stated in a Worker Adjustment and Retraining Notification (WARN) letter.
Since the acquisition of Smiths Medical from Smiths Group in London in 2022, the manufacturer of infusion pumps has focused on reducing costs by consolidating service centers and production facilities.
ICU, a company located in San Clemente, California, decided to close the Oakdale location permanently after conducting a detailed examination of its service operations in the United States, as stated in the WARN letter filed in Minnesota on July 16th.
The upcoming shutdown of the ICU’s facility is the most recent event in a string of workforce cuts within the MedTech industry, which has significantly impacted the sector in the last couple of years.
A recent examination by MedTech Dive of WARN filings in state databases revealed that over 14,000 workers in the industry have been laid off due to restructurings since the beginning of 2023.
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The Oakdale operation is set to start layoffs on September 16 and will last until December 31, as indicated in ICU’s WARN notice, which was shared with MedTech Dive by the Minnesota Department of Employment and Economic Development.
During the first month of 2022, ICU completed the purchase of Smiths Medical for a whopping $2.35 billion, expanding its collection to include syringe and ambulatory infusion, vascular access, and vital care devices.
Nonetheless, in the year 2023, the company encountered difficulties when incorporating the acquisition of Smiths Medical, resulting in a decrease in revenue and ultimately a net loss of $29.7 million.
To ensure the smooth running of activities and set the merged company up for expansion, ICU is implementing various strategies.
Among the measures being taken are the closure of redundant pump service centers and other locations worldwide, as well as a strategy to reduce the current 20 manufacturing sites to only 10 facilities by 2026.
The notice from Minnesota WARN stated that the layoffs at the Oakdale service center will primarily impact technician positions, with inspectors, supervisors, engineers, and various other roles also being affected.
A union did not advocate for these workers.
Furthermore, during this season of rebirth, Smiths Medical withdrew over 2,900 critical ventilators in the United States due to issues that resulted in eight severe injuries.
Juniper Calloway is a dedicated journalist with 3 years of experience in covering hard-hitting stories. Known for her commitment to delivering timely and accurate updates, she currently works with MikeandJon Podcast, where she focuses on reporting critical topics such as crime, local news, and national developments across the United States. Her ability to break down complex issues and keep audiences informed has established her as a trusted voice in journalism.
