ZimVie, the maker of spine and dental products spun out from Zimmer Biomet last year, said it will cut 5% of its staff as part of a broader restructuring plan to reduce costs and streamline the organization.
As of December, the company had more than 2,700 employees, a little over half of whom were located in the U.S.
The restructuring, along with reductions in discretionary spending, are expected to save the company $17 million to $20 million by 2024, ZimVie said in a Wednesday statement.
“These actions are in accordance with the plan we laid out at the time of spin and are aimed, in particular, to increase efficiency and profitability of our spine portfolio in all markets,” ZimVie CEO Vafa Jamali said in the company’s first-quarter earnings call on Wednesday, adding that the expense reductions are included in its 2023 forecast.
ZimVie reported revenue of $225.1 million in the first quarter, a 4.1% decrease from the year-earlier period. The company’s net loss widened to $30 million in the quarter, from a net loss of $25.7 million a year earlier.
Shares of ZimVie have increased by about 27% since Wednesday afternoon. J.P. Morgan analyst Robbie Marcus said ZimVie’s revenue and gross margin beat the firm’s estimates.