MiMedx to lay off 24% of workforce in restructuring effort

MiMedx (NSDQ:MDXG) said yesterday that it plans to eliminate 24% of its total workforce as part of a larger overall plan to reduce cost and improve efficiency. The Marietta, Ga.-based company said that it plans to eliminate 240 full-time employees, with approximately half of those cuts coming from the salesforce. The plan also includes reducing costs of “various non-employee expenses,” with MiMedx expecting to realize the savings during the beginning of the first quarter of 2019. “Today’s announcement is a continuation of management’s efforts to position the business for long-term success by focusing on our wound care business, where our clinical studies best support patient outcomes and for which reimbursement policy has traditionally been more stable. Recent business trends and our internal analysis have led us to simplify and streamline our organizational structure, and reduce costs in order to improve profitability and liquidity,” interim CEO David Coles said in a prepared statement. “I’d like to thank all of our employees for their contributions to our company and their support of our mission. We are confident these organizational changes will both better align our cost structure with our near-term revenue expectations and allow us to operate more efficiently and effectively. By tackling the cost structure now, we believe we are better able to position MiMedx to capitalize on the market opportunities presented by our products and pipe...
Source: Mass Device - Category: Medical Devices Authors: Tags: Blog MiMedx Group Inc. Source Type: news