Amedica announces restructuring plans following business review

Amedica Corporation recently announced multiple changes within its organization, including a 28% reduction in its workforce, following a comprehensive business review.

The reduction, which will affect 25 employees, is part of an effort to improve financial performance, increase operational efficiencies and strengthen the company’s value proposition, according to a press release. The staff reduction will reportedly save the company approximately $2.8 million annually.

Other changes being enacted include cutting manufacturing costs by 25% by leveraging a manufacturing partnership with Kyocera; reducing corporate overhead and operational expenditures by approximately 35%; and aligning the company’s sales, marketing and product development teams. Starting in the first quarter of 2015, these changes are anticipated to deliver anywhere from $6 million to $8 million in annual operating profit benefit.

The changes went into effect on Jan. 8, according to the release.
“The difficult decisions we made reflect a thorough review of our business by the leadership team and board of directors,” B. Sonny Bal, MD, JD, MBA, chairman and CEO of Amedica, said in the release. “We are very mindful of the impact these changes will have — particularly to our outstanding employees — and will help those who are impacted through this transition phase.”

Reference: www.amedica.com.