Amid rounds of layoffs by Illumina, Pear Therapeutics and other medtech firms, Teleflex is restructuring. The Wayne, Pennsylvania-based company makes catheters and devices for anesthesia and surgery, and has about 14,000 employees.
The company didn’t say how many workers would be affected by the restructuring plan, but disclosed in a Monday filing that it expects to incur between $31 million and $40 million in restructuring costs, including termination benefits and the cost of closing facilities and transferring manufacturing operations.
The restructuring, which started on Nov. 15, is expected to offset increasing costs and inflationary pressures. Starting in 2023, Teleflex expects annual pre-tax savings of $21 million to $23 million.
This isn’t Teleflex’s first restructuring. In its most recent quarterly report, the company said it had ongoing restructuring initiatives that started with the divestiture of its respiratory business, which sold to Medline last year. That included transferring some of its manufacturing operations to Medline and relocating some of its manufacturing operations to lower-cost locations, as well as workforce reductions.
In the third quarter, Teleflex reported revenues of $687 million. The company lowered its revenue forecast for the year, with CFO Thomas Powell citing foreign exchange rates and the “persistence of procedure environment headwinds” in an Oct. 27 investor call.
Earlier this year, the company acquired Standard Bariatrics for $170 million. Teleflex expects revenue of $4 million to $5 million from that transaction in the fourth quarter.