End of a Longstanding Cardiovascular Hub

Medtronic is undertaking a sweeping restructuring of its cardiovascular business while preparing to close its Santa Rosa, California facilities, a move reported to impact approximately 370 employees and mark the end of nearly three decades of operations in the region.

The Santa Rosa operation became part of Medtronic in 1998 following the company’s acquisition of Arterial Vascular Engineering (AVE), a pioneering coronary stent company that helped establish the region as a center for cardiovascular device innovation.

According to reports, Medtronic informed employees that it plans to phase out operations at the Santa Rosa campus over the next two years following a broader review of its global operations. Work currently performed in Santa Rosa may be transferred to facilities in Santa Ana, Minnesota, and Galway, Ireland.

Employees are expected to begin departing the Santa Rosa site in spring 2027, with full closure anticipated by spring 2028. The move affects workers at the two-building campus as well as remote and hybrid employees tied to the location.

Although Medtronic has not officially confirmed layoffs connected to the restructuring, employee reports and industry coverage suggest staffing reductions are occurring alongside the reorganization.

Investor Pressure and the Push for Growth

In recent years, Medtronic has faced mounting investor pressure to improve performance despite continued investment in new technologies and product development. Although the company maintains a strong cardiovascular pipeline and has achieved several product milestones, its shares have remained under strain amid concerns over growth and profitability.

Cardiovascular remains one of Medtronic’s largest and most strategically important segments, generating billions in annual revenue and serving as a central driver of the company’s long-term growth strategy.

The restructuring also comes as Medtronic faces intensifying competition across multiple cardiovascular markets from rivals including Boston Scientific, Abbott, Edwards Lifesciences, and Johnson & Johnson MedTech. Competitive pressure has accelerated in high-growth areas such as pulsed field ablation, structural heart therapies, and minimally invasive cardiovascular procedures.

Acquisitions Signal Broader Cardiovascular Ambitions

Despite restructuring efforts and facility closures, Medtronic has continued investing aggressively in cardiovascular innovation through acquisitions, partnerships, and next-generation technologies.

In 2022, Medtronic formed a strategic partnership with CathWorks focused on AI-powered coronary diagnostics. The relationship expanded significantly in early 2026 when Medtronic announced plans to acquire the company in a deal valued at up to $585 million.

Announcing the acquisition, Jason Weidman, senior vice president and president of Medtronic’s Coronary and Renal Denervation business, said the company had seen how CathWorks could “revolutionize the traditional wire-based FFR segment” through data and AI-powered diagnostics. He added that the acquisition would help Medtronic “transform the cath lab” with technologies designed to support more personalized treatment decisions.

The acquisition adds CathWorks’ FFRangio system — a non-invasive technology used to evaluate coronary artery disease — to Medtronic’s growing cardiovascular portfolio.

The company also announced plans in 2026 to acquire Scientia Vascular, a developer of microfabricated guidewires and catheters used in neurovascular and stroke procedures. While primarily tied to Medtronic’s neuroscience business, the deal further reinforces the company’s broader strategy of expanding into high-growth minimally invasive vascular technologies.

Meanwhile, Medtronic continued expanding major cardiovascular growth platforms including pulsed field ablation (PFA), transcatheter aortic valve replacement (TAVR), leadless pacemakers, and renal denervation therapies. Company earnings reports throughout 2024 and 2025 highlighted continued momentum in structural heart, cardiac ablation, and cardiovascular device sales.

The recent acquisitions and platform investments suggest Medtronic is attempting to build a more unified cardiovascular ecosystem that combines AI-driven diagnostics, minimally invasive technologies, cardiac implants, and surgical therapies under a more coordinated leadership structure.

The Cardiac and Aortic Business Reorganization

Against this backdrop, Medtronic launched a major reorganization of its cardiovascular portfolio aimed at accelerating innovation and improving coordination across specialties.

As part of the restructuring, the company combined its Cardiac Surgery and Aortic businesses into a newly formed Cardiovascular Surgery operating unit led by Karim Bandali.

Bandali described the move as the creation of “a new operating unit” focused on cardiovascular surgery that unites “deep expertise, talented people, and a shared commitment to patients and clinicians.”

The new division brings together technologies including surgical heart valves, ECMO, left atrial appendage (LAA) occlusion, mitral and tricuspid repair systems, aortic stent grafts, guidewires, and related cardiovascular therapies.

Medtronic also reorganized additional cardiovascular operations by combining its Structural Heart, Coronary, and Renal Denervation businesses into a separate Interventional Cardiology Therapies unit designed to strengthen collaboration and market reach.

Industry analysts view the restructuring as an effort to break down internal silos across Medtronic’s cardiovascular businesses as hospitals increasingly demand integrated treatment platforms rather than standalone devices.

The restructuring may also help Medtronic streamline how it sells products to large hospital systems, which increasingly prefer vendors capable of offering comprehensive cardiovascular portfolios spanning surgery, interventional cardiology, electrophysiology, and post-operative care.

The restructuring follows the departure of Simona Zannetti, who previously led the company’s Aortic business before joining Artivion as chief medical officer and senior vice president of clinical research.

Broader Operational Streamlining Across Medtronic

The cardiovascular restructuring comes amid wider operational changes across Medtronic’s business units.

Earlier this year, the company announced layoffs affecting employees at its Northridge, California diabetes facility as part of plans to separate its diabetes business into a standalone company called MiniMed. The move reflected a broader company-wide effort to sharpen focus across major business segments and streamline operations.

At the same time, Medtronic reportedly faced cybersecurity concerns after reports surfaced linking the company to a data breach claim associated with the ShinyHunters cybercrime group.

Together, the restructuring initiatives suggest Medtronic is increasingly focused on simplifying operations, consolidating leadership structures, and prioritizing higher-growth technology platforms across its global business.

A Strategic Shift in Cardiovascular Care

The closure of the Santa Rosa facility and the consolidation of Medtronic’s cardiac-related business units signal a broader strategic shift toward centralized cardiovascular operations, integrated care platforms, and higher-growth technology segments.

While the restructuring may improve coordination and operational efficiency, it also reflects the mounting pressure facing large medtech companies to accelerate innovation, defend market share, and deliver stronger financial performance in an increasingly competitive cardiovascular market.

For Medtronic, the reorganization represents more than a corporate reshuffle. It is an attempt to reposition one of the world’s largest medical device companies around the next generation of cardiovascular care — combining surgical, structural, diagnostic, and minimally invasive technologies into a more unified global strategy.