Wright Medical Group Inc. will lay off 80 employees in a restructuring plan announced this morning that will reduce spending, streamline the company?s international operations and product portfolio and review its research and development projects.
In an early-morning news release, the company said it has already notified employees of the change and ?has taken steps to ensure a smooth transition.
?Our industry continues to face a challenging economic environment and, after extensive analysis and consideration, we believe this plan will enhance the company?s prospects for growth and value creation,? interim CEO David D. Stevens said in a statement. ?We are taking these actions now to better position the company to grow its earnings in 2012 and we are confident that this plan will result in a leaner, more cost efficient operation, which is in the best interest of our business and all of our stakeholders.?
The move is expected to grow shares 5 or 6 cents next year and have an 8-cent favorable impact thereafter. The restructuring plan will cost the company $25 million-$30 million in pre-tax charges, of which $6 million-$8 million is expected to be non-cash.
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