Medtronic Diabetes laying off more than 400 at Northridge site

Alfed Mann founded Medtronic Minimed, Inc. (formerly, Minimed, Inc) and served as its chief executive officer. (forbes.com)

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edtronic Diabetes is laying off more than 400 workers at its Northridge facility as the company consolidates and shifts its customer service operation to Texas, officials said Wednesday.

A total of 464 positions will be eliminated by October 30, including about 300 customer service jobs being transferred to San Antonio, spokeswoman Amanda Sheldon said. Those call-center employees were offered the chance to relocate.

About 1,800 employees will remain at the Devonshire Street campus, which is the headquarters for Medtronic Diabetes and where the company conducts research and manufactures insulin pumps and glucose monitoring systems.

"To my knowledge we are committed to the division we have here as of right now," Sheldon said. "We are restructuring the diabetes business to increase operating efficiencies."

Medtronic Inc., an international company based in Minneapolis, said in February it would eliminate about 2,100 jobs in response to market conditions.

And in May 2009, it announced that San Antonio would be home to its new Diabetes Therapy Management and Education Center. At the time the company said it would staff the center with 1,400 workers over a five-year period.

The company addressed its Northridge operation in that press release.

"Medtronic continues

to invest and grow its headquarters in Northridge and commitment to California employees remains strong," it said.

An analysis by the San Antonio Economic Development Foundation said the Medtronic facility will generate more than $750 million annually in economic benefits.

Foundation President Mario Hernandez said his city attracted Medtronic through its business-friendly, low-cost reputation.

"They are going to save 30 to 40 percent on all cost factors versus Los Angeles," he said. "And (workers) can live very comfortably very near the facility."

San Fernando Valley economic development officials said this is another tough blow for the Valley's middle class.

"The call center jobs are middle-class jobs and probably held by many people who live in the San Fernando Valley," said Stuart Waldman, president of the Valley Industry and Commerce Association. "Any time a company leaves California it's sad - but it's even sadder when they are leaving the Valley."

Waldman also noted that states like Texas have a competitive edge over California when it comes to getting new business.

"Our state and local governments continue to raise taxes and fees and make it hard for companies to do business," he said. "I can't tell you how many times I hear from business folks who got a call from people in Texas."

Economist William W. Roberts, director of the San Fernando Valley Economic Research Center at California State University, Northridge, said it will be nearly impossible to replace these jobs in the current economy.

"They are gone. The decision has been made. It's the one area we were looking at for growth and more employment," Roberts said of the biomedical sector. "Getting jobs at all is very difficult."

Source: http://www.dailynews.com/news/ci_18281215?source=rss

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