As an activist hedge fund, Elliott Investment Management pushes for changes that often result in significant layoffs at the companies it invests in. While Elliott does not directly manage the day-to-day operations, its influence on corporate boards and demands for cost-cutting and restructuring have been closely linked to job cuts.
Examples of layoffs connected to Elliott Management
Southwest Airlines (2025): After Elliott acquired a major stake and secured board seats, the airline announced its first-ever company-wide layoffs. Critics believe this action was influenced by Elliott's push for profitability.
Salesforce (2023): Following Elliott's investment, Salesforce cut 10% of its workforce. Employees reportedly feared further layoffs due to Elliott's pressure for cost reductions and improved profitability.
AT&T (2019): After Elliott took a stake and demanded a strategic overhaul, AT&T cut tens of thousands of jobs and accelerated mass firings. This is viewed by critics as an example of Elliott's strategy prioritizing shareholder returns over employees.
Athenahealth (2018): After an Elliott subsidiary led a buyout, the company laid off employees, sold assets, and went private.
Juniper Networks (2015): Elliott's push for cost reductions at Juniper Networks reportedly led to job cuts at the tech company.
Why Elliott Management is linked to layoffs
Activist investor strategy: Elliott is known for "activist investing," where it buys a large stake in a company and then pushes for major changes to increase its stock value.
Focus on cost-cutting: Their playbook often involves demanding aggressive cost reductions, including slashing perceived "non-essential" departments to boost profits.
Control through board seats: The hedge fund often seeks control by gaining seats on a company's board, giving it direct influence over restructuring and personnel decisions.
Pressure for asset sales: Elliott sometimes advocates for selling off company assets to create cash for investors, which can destabilize operations and result in layoffs.
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@e5
I was impacted by May 2025 layoff, and I agreed with you that I felt now lucky to be selected, as I was not happy with work and management anyway. I think this is a great sign and reminder at this phase. Life is short. Be prepared, financially and mentally to embrace a better change.
Google AI: what other actions beside Layoffs the Medtronic might take to improve efficiency?
To improve efficiency without solely relying on layoffs, Medtronic can pursue a variety of strategies focused on optimizing its operations, supply chain, and portfolio, guided by its newly formed Operating and Growth Committees.
Operational and manufacturing improvements
Optimize the supply chain: Medtronic has already begun to streamline its supplier base and manufacturing sites to improve efficiency. Further actions could include:
Reducing inventory levels for both finished goods and raw materials.
Expanding the use of automation and data analytics to reduce waste and increase productivity.
Leveraging technology like AI and machine learning to create a more resilient and autonomous supply chain.
Enhance process and quality control: By using Lean Six Sigma and other process improvement methodologies, Medtronic can address non-value-added activities and redundancies in its manufacturing and administrative workflows. This includes:
Adopting real-time data monitoring to improve Overall Equipment Effectiveness (OEE).
Reducing lead times and minimizing scrap and defects through better quality control.
Improve data and analytics: The company has made a major effort to unify its data and analytics into a cohesive system called "INSIGHTS". Further steps include:
Automating more processes using tools like Microsoft Power Automate to free up employee time from repetitive tasks.
Using data-driven insights to help employees make better, faster business decisions.
Portfolio and business structure adjustments
Divest non-core assets: The new Growth Committee is tasked with exploring potential divestitures. Selling off underperforming or non-strategic business units allows Medtronic to focus its resources on high-growth areas. The company has already announced a plan to spin off its Diabetes business.
Targeted mergers and acquisitions (M&A): The Growth Committee will also oversee "tuck-in" M&A. These smaller acquisitions of innovative companies allow Medtronic to acquire new technologies and capabilities that can improve product offerings and accelerate growth, rather than relying on internal development alone.
Realign research and development (R&D): Medtronic can redirect its R&D investments toward its most promising product lines. By analyzing market data and consumer feedback, the company can prioritize projects with the highest potential return on investment, improving capital efficiency.
Commercial and sales strategy
Implement a "next-generation" sales model: The medtech sales landscape is shifting, and companies that adopt new models that are more efficient and data-driven can gain a competitive advantage.
Adopt AI to boost sales efficiency: AI can help sales teams analyze market data, identify ideal customer profiles, and plan their sales outreach more effectively. This allows Medtronic's sales force to focus on high-impact opportunities instead of administrative work.
Improve the customer experience: Enhancing the customer journey, from sales to service, can build loyalty and create new value pools. By improving the patient experience with digitally-enhanced devices and personalized offerings, Medtronic can strengthen its market position.
Corporate-level initiatives
Enhance performance management: By moving from traditional annual reviews to a continuous feedback model, Medtronic can help employees address challenges more promptly and stay aligned with evolving company priorities.
Refine return-to-office policy: By adjusting its work-style policies, Medtronic aims to foster in-person collaboration, which it believes can boost operational efficiency.
Align incentives: Medtronic can improve employee engagement by aligning incentives with performance goals. By empowering its 45,000 operations and supply chain employees to act as "problem solvers," the company can generate cost savings and improve efficiency.
What makes you think severance packages will be around?
Sometimes layoffs are not a bad thing to employees who are already planning on leaving. Just wondering if the severance package will be significantly worse now with Elliott.
Elliott are not a new investor… and activist investors only ever show up when it’s already a mismanaged sh-tshow… so yes, of course layoffs often follow…
I think were all in for a rocky road ahead. I feel we will see the effects before the end of this year. SMH
Many people are going to get RIF. After that, Medtronic will be broken up and sold for parts.
Sounds like Elliott is committed to the mission statement that Earl Bakken established long ago and has been the companies guiding tenet!
Cutting jobs has already a major part of cuurent leadership strategy. But now things will move forward exponentially. IMHO