Profit pressures, mergers, and shifting portfolios lead to widespread job cuts in the MedTech sector, with experts predicting layoffs may persist into 2025.

The MedTech industry has been rocked by thousands of job cuts over the past year, leaving many employees wondering if the trend will continue into 2025. Companies like 23&Me, Smith & Nephew, and Embecta have recently announced layoffs as part of restructuring efforts to address profitability pressures and strategic shifts.

From January 2023 to mid-2024, more than 14,000 jobs were slashed in the MedTech sector, as companies struggled with the aftermath of the COVID-19 pandemic, rising inflation costs, and growing pressure from investors. MedTech firms are rethinking their operating models, adjusting their portfolios, and trimming their workforces to align with shifting market demands.

Industry experts suggest that while the wave of layoffs is likely to continue, there may be signs of stabilization in the coming months. According to Sheryl Jacobson, leader of Deloitte Consulting’s MedTech practice, the toll of layoffs on individuals is significant. Yet, the industry must adapt to new expectations surrounding profitability, as investors now demand stronger cash flow even if growth slows.

Mergers and acquisitions (M&A) are also contributing to the job cuts, with companies like Edwards Lifesciences making major portfolio adjustments. Experts anticipate that M&A activity will remain high in the next 12 to 24 months, further impacting MedTech employment.