Surgalign announces corporate restructuring, layoffs

DEERFIELD - Surgalign Holdings Inc. said its board of directors has approved a corporate restructuring plan that will include layoffs and is intended to help drive growth in its most valuable and profitable businesses.

The board has approved the exploration of further restructuring initiatives, which include but are not limited to the potential paring down, selling or exiting certain aspects of its business, both domestically and abroad, Surgalign said.

As part of the plan approved on Nov. 8, Surgalign intends to streamline and optimize resources and lower future working capital requirements. The company said it expects to incur approximately $3 million to $3.5 million in employee-related severance costs and $2.5 million to $3.5 million in other exit and disposal costs in the fourth quarter of 2022 and first quarter of 2023, for a total estimated restructuring cost of approximately $5.5 million to $7.0 million.

"We intend to take aggressive steps to realign our business and improve our market position and value creation opportunities," said Terry Rich, president and chief executive officer of Surgalign. "Our focus is on innovation and better serving our customers with the products and support they need to improve patient outcomes."

Surgalign is a global medical technology company committed to the promise of digital health to drive transformation across the surgical landscape. Surgalign markets products throughout the U.S. and in approximately 50 countries through a network of independent distributors.

Headquartered in Deerfield, the company operates commercial, innovation and design centers in San Diego; Warsaw and Poznan, Poland; and Wurmlingen, Germany.