Medtronic Cuts 30% of Staff at Jerusalem R&D Center Amid Global Restructuring

The predecessor of this R&D center was Oridion Medical, established in 1987, focusing on the development of respiratory monitoring systems. Its carbon dioxide monitoring technology enjoys a prestigious reputation worldwide. In 2012, Oridion was acquired by Covidien for $346 million. As Covidien merged into Medtronic in 2015, the Jerusalem center became an essential part of Medtronic's R&D network in Israel.

Data shows that Medtronic has approximately 1,200 employees in Israel, distributed across eight sites including Jerusalem and Yokneam, under the leadership of Arik Corcos.

Notably, this is not Medtronic's first layoff in Israel.In May 2024, the company has cut 35 positions, mainly from Mazor Robotics, the surgical robotics firm acquired for $1.6 billion in 2018.

Moreover, Medtronic is currently facing a tax recovery lawsuit from the Israel Tax Authority involving an amount of approximately 674 million New Shekels (about 200 million US dollars). The Tax Authority accused that after acquiring Ventor Technologies in 2009, Medtronic did not adequately disclose the transfer of intellectual property rights. Although the local court has ruled in favor of the Tax Authority, Medtronic has appealed to the Supreme Court.

Medtronic stated: "This adjustment aims to optimize the global business layout and improve operational efficiency.We are transferring some functions from Jerusalem to other production sites in order to consolidate similar processes. We are currently initiating local legal procedures and are committed to supporting the affected employees throughout this process, and welcome them to apply for any vacant positions within the company.”