Masimo, listed on Nasdaq as MASI, revealed plans to cut 75 positions at its headquarters in Irvine, California. These job reductions, impacting many engineers and designers, are slated to be permanent and will take effect on January 13, 2025. This information was disclosed to the California Employment Development Department via a WARN notice dated November 14, 2024.
These workforce changes come after a notable transition period for the health monitoring and digital health company. Founder and former CEO Joe Kiani stepped down after a fierce proxy battle with Politan Capital Management resulted in his removal as board chair in September. Johnson & Johnson’s former executive, Michelle Brennan, is currently at the helm as interim CEO. Despite this challenging backdrop, Masimo reported better-than-expected earnings for the third quarter and updated its full-year earnings projections positively.
According to a statement issued to MassDevice, Masimo expressed its commitment to achieving long-term growth by concentrating resources on substantial market opportunities. This strategic pivot necessitates reducing staff in specific areas. They emphasized the need to continue significant investments in innovation, albeit at the cost of modifying workforce allocations, to enhance the company’s ability to meet goals and genuinely benefit patient care.
In the 2024 Medtech Big 100 report by MassDevice and Medical Design & Outsourcing, Masimo ranks as the 53rd largest medical device entity globally, boasting more than $2 billion in revenue and employing 4,000 people.
The medical device sector has seen a trend of layoffs toward the end of the year, with companies striving to adapt to a multitude of obstacles—including operational concerns with major healthcare clients, supply chain disruptions due to climate change and more, inflation pressures, high interest rates, and an economic slowdown in China. MassDevice has documented over 22,000 job cuts within the medtech industry since mid-2022.