What comes next?

This is all speculation on my part. I have no inside info; I’m a lowly individual contributor. But this is my guess:

Geoff is DONE. There is no coming back from this. Performance in his tenure has been poor to put it kindly; morale was already at an all-time low. Now it’s cratered. The sheer size of this RIF, how poorly it’s been executed, the utter lack of transparency, the refusal to quantify it in size or duration - there’s no recovery from that. His credibility was on life support to begin with. I realize that employee sentiment here and at cafepharma might not be fully indicative of the overall employee base, but he’s not far from having a full blown mutiny on his hands.

. Which makes me think, as others have implied, that the Board already made up their mind (it’s close to dereliction of duty if they haven’t). He’s a deadman walking and they’ve chosen to make him a useful id--t on his way out the door. Better for him to be the bad guy and the face of one of the lowest moments in company history, so that the new CEO comes in with a clean slate. Gotta earn that golden parachute.

. So who’s next? Staying in house didn’t work too well last time, and virtually all of the other candidates from when Geoff was tapped have moved on to greener pastures. I say Omar comes back on an interim basis while a search is conducted. He’s left Intel; his SPAC has fallen flat. There was a rumor the Board already reached out.

. Who after Omar? Who knows. Mike Coyle is out there. Chris Barry will be if the NuVasive/Globus deal goes through (though they’ll never let an ex-Covidien person in the big chair). Maybe they go way outside like they did with Omar.

. I think there’s something to the GIH being for sale rumor posted here. MedSurg has been stripped down to GIH and Surgical. Off-loading GIH leaves Surgical as a stand-alone portfolio/OU, like Diabetes, which would make more sense as to why Marinaro got appointed to Ex-Com. Que is the only other OU Pres who’s on it. Then they’re positioned to spin-off Diabetes and/or Surgical next time they need a cash infusion. Then the company is largely broken-up, fulfilling the GE parallels, and legacy Medtronic is largely back in tact since so many feel M&A has been the root cause of all the problems

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Why does Blackrock care about Gm delivering a woke agenda? How does that impact EPS?

The tax inversion is one reason for the rif. Getting paid in non-u.s. currency is one the thing they have told is during the rif.

4 to 5 years for mdt to recover. Renal denervation (if it gets approved) will have reimbursement challenges.

I see diabetes and cardiac surgery getting divested.

To keep costs down mdt needs to limit the number of folks it hires on work visas.

At this point the analysts view of Geoff controls his future and he knows it. they keep talking about uneven performance and uncertain outlook and downgrading us to sell or hold, even if we are hitting our watered down goals, the board is going to realize he cant sell the street on our future anymore. even a couple wins like 780G wont save him. Now if their notes show confidence, the stock starts to recover, hes got time to reestablish his crediblity. We've all seen what its like when management loses the confidence of the analyst community, they'll not say one positive word on the earnings call Q&A, just go right for any misstep, poking and prodding. we'll know in 3 quarters I think if he's going to survive.

Geoff will not be done that easily. Geoff is protected by Blackrock and State street as well as current administration. He needs to deliver on certain "woke" agenda. Then, will be dispensed like a used toilet paper.

I agree with @ygb+1mgOChG2

This trend really started with Omar, not Geoff. Omar is responsible for the many acquisitions that went bust or otherwise underperformed. Geoff is merely inheriting Omar's mess.

Although, the diabetes pump just got FDA approval yesterday.

Post ID: @OP+1mgOChG2 - kudos, what a insightful view. Hope this Mfkr- Omar is not brought back..Covidian acquisition was largely a failure, his personal SPAC was a failure.. must be eagerly hoping/praying to get calls from boards to come back.
Derivative Shareholder Lawsuit from someone??

Any news about Digital surgery in London?

I think this is one of biggest acquisition failure. They paid 350 mil plus 50mil for every year. On top of that, the digital surgery generates 1m per year. Big hole.

Thread regarding Medtronic Inc. layoffs

What comes next?

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