Medical Devices Sector Cuts 14,000 Jobs Amid Ongoing Challenges

According to a new analysis of Worker Adjustment and Retraining Notification (WARN) filings by MedTech Dive, medical devices companies have cut over 14,000 jobs in 18 months due to restructuring and reduced COVID-19 testing demand. The sector, including major firms like Johnson & Johnson and Medtronic, have faced widespread layoffs peaking in mid-2023, reflecting ongoing industry challenges despite some recovery signs.

The analysis, covering WARN filings from Jan. 1, 2023, to June 30, 2024, reveals that layoffs have affected companies of all sizes, from small firms to industry giants like Johnson & Johnson, Medtronic, Abbott, and Thermo Fisher Scientific. The diagnostics sector has been particularly hard-hit, accounting for over 5,000 layoffs. Cue Health, which announced its shutdown in May, alone accounted for more than 1,200 layoffs.

Although the frequency of layoffs has decreased since peaking in 2Q23, when over 4,000 positions were cut, recent quarters have still seen more than 1,800 layoffs each, reports MedTech Dive. 

This trend of job cuts reflects broader industry challenges, including macroeconomic pressures and ongoing adjustments following the COVID-19 pandemic. Despite some companies reporting a return to growth, the impact of these layoffs continues to be felt across the medical device sector.

The WARN Act mandates that companies with 100 or more employees provide at least 60 days' notice for mass layoffs or plant closures affecting 50 or more employees at a single location.