While the summer months may be coming to an end, companies and their workforces are always in a constant flux. In August, a significant number of medtech companies have announced restructuring initiatives.
- Mela Sciences stated that it would lay off 25% of its staff following a disastrous second quarter. In addition, the company announced that it would restructure its existing operations. Mela Sciences manufactures a skin cancer detection device, dubbed MelaFind. In part, the company believes that its poor second quarter was due to an over-saturated sales force.
- Volcano Corp. also announced layoffs earlier this month. Starting this September, the company will terminate 39 positions. In March of 2013, Volcano Corp reported a workforce of 280 employees in its Rancho Cordova facilities. Over the past few years, the company’s workforce has been on the decline. In 2011, the company had a workforce of 570 employees. One year before that, Volcano had a workforce of 685 employees.
The company manufactures a variety of devices for the treatment of vascular diseases. Volcano’s product lines include catheters and intravascular guidance technologies. In addition, the company manufactures ultrasound consoles and disposable imaging catheters for use in ultrasound labs. These systems are designed to diagnose the severity of cardiovascular disease. Volcano also manufactures pressure guidewires, flow guide wires and functional management consoles.
- Thermo Fisher Scientific. On August 8th, Qmed reported that Thermo Fisher Scientific (Waltham, MA) laid of 150 of its employees in lab products, 80 positions in analytic techonlogies and 110 employees in speciality diagnostics. Combined, these cuts represent $12.8 million in severance costs. This comprises more than half of the company’s $21.5 million in restructuring charges, first disclosed in Q2.
Thermo Fisher branded the latest layoffs as a “headcount reduction and facility consolidations." While restructuring has played a prominent role at Thermo Fisher over the past year, the company is looking towards the future. In early 2014, the company plans to complete the acquisition of Life Technologies. However, that acquisition will take some financial maneuvering. To do this, the company has raised $2.2 billion in a stock sale. In addition, the company will use $4 billion in equity financing and $10 billion in debt / cash to cover the deal.
- CareFusion also announced a restructuring initiative. While CareFusion’s initiative has resulted in some divisional staff reductions, the net impact has been an increase in jobs.
For more on recent layoffs:
by Qmed Staff on December 9, 2013
by Qmed Staff on December 2, 2013
by Qmed Staff on November 22, 2013
by Qmed Staff on November 13, 2013
by Qmed Staff on November 11, 2013
by Qmed Staff on November 8, 2013
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