Medtronic eyes $450 million-$475 million in annual cost savings through restructuring

(Reuters) - Medtronic Plc MDT.N on Tuesday said it would cut costs by $450 million to $475 million a year by fiscal 2023 as the medical device maker embarks on a restructuring exercise to create focused "operating units" from its existing businesses.

The Dublin-based company said in a regulatory filing here it would move to the new model beginning in its fiscal third quarter and that the operating units would focus on specific therapy areas.

The world’s largest standalone medical device maker is also assessing the impact of these changes to the reporting of its four business segments: minimally invasive therapies group, restorative therapies group, diabetes group and cardiac and vascular group.

As a result of the restructuring program, the company expects to incur $400 million-$450 million in costs by the end of fiscal 2022.

Reporting by Manojna Maddipatla in Bengaluru; Editing by Subhranshu Sahu