Carl Zeiss Meditec said it may cut as many as 1,000 positions globally over the next three years as part of a restructuring initiative.
The German company, which specializes in devices for ophthalmology and microsurgery, unveiled a package of cost-saving measures this week to improve profitability as it reported lower revenue and earnings in the first half of its fiscal year.
CFO Justus Felix Wehmer said in a statement that geopolitical and regulatory uncertainties have created a challenging market environment. The company said an "increasingly weak investment climate” in the Americas region compounded declines in the company’s intraocular lens business.
Overall revenue fell 5.7% year over year to 991 million euros in the first half of fiscal year 2025-26. Adjusted earnings before interest, tax and amortization were 60.5 million euros, down from 112.6 million euros in the prior-year period.
To restore profit growth, Carl Zeiss plans a range of actions that include optimizing the supply chain, clearing out less profitable products and strengthening R&D by relocating activities to cost-efficient countries. The company said it also plans to reduce administrative expenses through personnel and non-material cost cuts, which could affect up to 1,000 positions across the global organization over the next three years.
The cost reductions follow a previously announced initiative to accelerate revenue growth by revamping the company’s manufacturing site strategy. That effort includes building a stronger presence in China and expanding cost-efficient capacities outside of China.
The company is targeting annual earnings improvements of more than 200 million euros by fiscal year 2028-29.
