(Reuters) -Medical device maker Medtronic ( MDT ) plans to separate its diabetes business into a stand-alone company, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The new company, led by the head of Medtronic's ( MDT ) diabetes division Que Dallara, will have around 8,000 employees and be based in Northridge, California, the report said.

The separation is expected to be completed within 18 months, the paper added. Medtronics did not immediately respond to Reuters request for comment.

Medtronic's ( MDT ) diabetes business, which generated $2.5 billion in sales in the fiscal year ended April 2024, has been a focus of turnaround efforts by the company after it received a warning letter from the U.S. Food and Drug Administration in 2021 regarding product safety issues.