Dentsply announces workforce reductions & restructuring plan, posts Q3 miss

Dentsply Sirona (NSDQ:XRAY) today announced restructuring plans that will eliminate 6% to 8% of its workforce as the company looks to reduce costs alongside releasing third quarter earnings that missed Wall Street expectations. The York, Penn.-based company said that its management team has “conducted an extensive diagnosis of the market” over the past six months and developed a plan to reduce costs, alongside third-party advisors, while remaining “optimistic about the underlying dental industry.” The company hopes the plan will achieve annualized top-line growth of 3% to 4% and adjusted operating income margin of 20% by 2020, while reducing annual costs by $200 million to $225 million by 2021. The plan includes a 6% to 8% reduction in the company’s global workforce, according to its earnings report, as well as “streamlining the organization and consolidating functions.” “We fully realize that our recent performance has been unacceptable and that is why we are taking aggressive action to grow revenues, expand margins and simplify the organization.  During the implementation of the program, we have prioritized maintaining the company’s revenue stream and serving our customers, including leveraging our existing infrastructure and outside resources to coordinate our activities.  We are dedicated to supporting our talented teams through this important and much-needed transformation. Our path forward will require making difficul...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Featured MassDevice Earnings Roundup Wall Street Beat Dentsply Sirona Source Type: news