It’s almost as if the VPs are deliberately trying to torpedo the company, but that gives them too much credit, it’s just greed and incompetence. I have seen some horrendously bad decisions, excessive risk taking, and cost cutting regardless of the ramifications.
In the last few years I’ve watched them RIF brain trusts, highly trained and effective engineers, SMEs, and people who’ve dedicated their lives to MDT. Yet, we’ve made a pretty nice profit all along, but I guess it’s not enough. These RIFs cause gaps in talent, capabilities and capacities and destroys morale. Things decay, don’t get followed up on, fall through the cracks, regulatory deadlines are missed and the workplace’s culture descends into toxicity and survival mode where no one will speak up out of fear of losing their jobs. Of course this takes time to develop, but it is what I’m seeing now and will snowball. How far can it go? Don’t know, but I’d like to think we’re not working for another Enron.
From my point of view, every new R&D project is run out of India, and in many cases with disastrous results. Also, seeing roles and responsibilities pushed to other departments that can’t handle them. Then when they ask for support from someone capable of providing it, an extreme silo culture makes it impossible to get that support. No department cares about the company’s success or reputation, only their own budgets and bonuses.
Meanwhile, MDT is paying out $3.6B in dividends a year and a stock price of $89. Just think how much the stock would go up by cutting even more resources, selling off other divisions, increasing the dividend, leveraging more licensing and OEMs, outsourcing as many jobs to India, Columbia, China and DR as possible. I would think a lot, but this strategy apparently isn’t working so far, just look at the stock price. Which I expect to take a huge hit with this Minimed spin off.
Even if GM can make the numbers, and get the price to $130, shortly there after the stock price will implode as issues pile up, projects fail, talent quits, accounts are lost, and the reputation is irreparably damaged. I see a future of no competent bio medical professionals wanting to have a career with MDT.
My advice, sell your stock, and if you still work for the company, start looking for another job. This is my plan. I’m tired of worrying if I’m the next RIF, or I’m the one that has to explain a mishandled quality issue to a federal regulator or the ongoing stress of fixing problems caused by bad business decisions. That, and my pay has not kept up with inflation. I have no reason to stay.