Medtronic PLC announced a corporate reorganization which it said would result in $450 million to $475 million in annual cost savings by fiscal 2023.

The reorganizing will help create operating units that will focus on specific therapy areas. The Irish medical device maker — which operates through four segments: cardiac and vascular, minimally invasive therapies, restorative therapies, and diabetes — said heads of the operating units will have full responsibility for their businesses, including controlling their own product development and clinical resources.

Medtronic CEO Geoff Martha had highlighted the company's pipeline during an Aug. 25 earnings call, calling it "the best it's been in a long time," but noted that the technology developed and acquired by the company has not yielded the market share it should.

"We're determined to make this pipeline count, not just for patients, our customers, but for shareholders," Martha had said on the call.

The restructuring is expected to incur total pretax costs of about $400 million to $450 million, the majority of which will be recognized by the end of the fiscal year 2022, Medtronic said in a Sept. 1 regulatory filing.

Medtronic will transition to the new model starting in its fiscal third quarter and will be fully effective at the beginning of the fourth quarter of its fiscal year 2021.