Medtronic’s senior executive promotions are the latest piece of the puzzle as the world’s largest medical device company seeks significant cost savings.
Mike Marinaro A year ago he was President of Medtronic’s Surgical Robotics Operating Unit and is now EVP and President of Medtronic’s Surgical Operating Unit.
Fridley, Minnesota-based Medtronic (NYSE:MDT) has not announced any changes in a press release or regulatory filings.
Instead, the medical technology maker has quietly updated its website to reflect Marinaro’s new title and “newly created” operating unit, stating “to redefine the future of surgery, the legacy and new Integrate robotic-assisted surgical technology.”
According to Marinaro’s LinkedIn profile, he assumed his new role in January. Attempts to contact him for further details were unsuccessful.
It wasn’t clear exactly when Medtronic updated its website, but it said that Marinaro was “recently appointed” to lead the new business unit. His new position webpage says he was renewed in February, while Medtronic’s leadership page says he was renewed this month.
In a statement to mass deviceMedtronic confirmed the merger and said it would continue its surgical robotics operations in Colorado and Connecticut.
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Starting in 2021, Medtronic has restructured its business into 20 business units (OUs), including Robotic Surgery and Surgical Innovation. These two of his OUs made up his Surgical Innovations Division in the Medical Surgical portfolio led by his EVP Bob White, which is still listed on Medtronic’s leadership page.
Matt Perry, former senior vice president of Medtronic and president of the Surgical Innovation OU, stepped down in November, according to a LinkedIn page.
The Surgical Innovations OU was the largest OU when Medtronic was reorganized. Meanwhile, the Robotic Surgery OU was struggling with supply he chain and manufacturing issues for Hugo robotic-assisted surgery systems.
Medtronic’s Hugo has received regulatory approvals in the EU, Canada and Japan. The system has not yet been approved by the FDA, but Medtronic is enrolling patients in clinical trials.
When Medtronic named Marinaro president of the Surgical Robotics OU in March 2022, he succeeded him. Megan Rosengarten, who has led the business for four years.Medtronic said that Rosengarten 6 months long vacation. She currently serves on the boards of Neuronetics and Early Bird Medical, according to her LinkedIn page.
Drastic Cost Savings and Tough Robotic Surgery Competition
Medtronic is consolidating its two units while making “substantial cost savings” by the end of its fiscal year in April. It’s unclear if Medtronic has cut headcount in the merger.
In general, Medtronic has said little about possible workforce cuts, but reportedly had more than 95,000 people worldwide at the end of last fiscal year.
In the meantime, it has offered early retirement incentives in recent weeks as another cost-saving strategy. Seeking voluntary retirement through early retirement is a way for companies to avoid layoffs or reduce severance pay, unemployment and legal costs if layoffs continue.
Medtronic is one of many companies, large and small, trying to challenge Intuitive Surgical in the field of soft tissue surgical robotics. However, Intuitive’s robotic system is giving healthcare providers a head start in the US market. Additionally, healthcare systems such as the United States seem reluctant to make high-cost capital investments like robotics as they grapple with staffing shortages and other operational challenges.
Johnson & Johnson MedTech, the world’s second largest medical device company, recently laid off nearly 350 surgical robotics jobs. whole, mass device reports that more than 19,000 medtech workers have been laid off across the industry since mid-2022.
Editor-in-Chief Chris Newmarker contributed to this report.