ZimVie

History

2023:5% staff cut

In early May 2023, ZimVie, created by the American Zimmer Biomet, announced a restructuring during which the number of employees will be reduced by about 5%.

ZimVie, which specializes in developing technologies for the treatment of the spine and teeth, announced the initiation of a reorganization program to ensure "future success in the current business environment." The company's activities are negatively affected by macroeconomic challenges, the crisis in the United States and high inflation.

The number of ZimVie employees will be reduced by approximately 5%

As of the end of 2022, ZimVie had a workforce of about 2,700. Thus, layoffs can affect approximately 135 workers. The downsizing comes amid declining discretionary spending. These measures are aimed at optimizing the organizational structure and improving the efficiency of business processes. It is expected that by 2024 the restructuring will provide savings from $17 million to $20 million per year.

I am pleased with the progress that our team has shown in developing the product range and shifting the focus from operational improvements to innovation and commercial activities. Since the beginning of 2023, we have introduced several new dental products, opened a state-of-the-art training center in North America, and made a number of advances in spinal treatment technologies. I am optimistic about the future of ZimVie, "said Vafa Jamali, the company's president and CEO.

It is also noted that the formed macroeconomic climate and currency fluctuations led to a reduction in revenue in the dental segment. But ZimVie has managed to partially offset the losses thanks to strong demand for dental implants and digital dental solutions.^[1]

2021: Creation of a company to produce technologies for the treatment of the spine and teeth

In early February 2021, Zimmer Biomet announced its intention to create a new company, ZimVie, which will specialize in the production of technologies for the treatment of the spine and teeth. Zimmer Biomet is set to implement the plan by mid-2022.

ZimVie will continue to develop robotic the Rosa One Spine surgical manipulation system, cervical endoprosthesis Mobi-C, as well as scoliosis The Tether treatment device. The dental business will include the development of a full suite of oral reconstruction facilities. The business for the production of technologies for the treatment of the spine and teeth accounted for almost 13% of the revenue of Zimmer Biomet for 2019-2020. - $1.022 billion in 2019 and $897 million in 2020, respectively.

Zimmer Biomet creates a new company ZimVie for the production of technologies for the treatment of the spine and teeth

Zimmer Biomet has been in the process of a major reorganization in recent years as the company's CEO Brian Hanson seeks to refocus the business. Zimmer Biomet even appointed Ellie Humphrey, who previously held senior positions at Medtronic, as its first chief transformation officer.

The decision will allow us to prioritize resources, simplify our operating models and deliver greater value through two independent public companies, Hanson said in a news release.

Brian Hanson will remain CEO of Zimmer Biomet. The search for the ZimVie CEO is in its final stages. Zimmer Biomet said it will announce the establishment of ZimVie's board of directors, management and headquarters as the arrangements are finalised.

For Zimmer Biomet, this spin-off will drive revenue growth of about 0.5% during the company's five-year strategic planning period, accelerate adjusted earnings per share growth and boost operating margins. ^[2]

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