Chris Newmarker

October 10, 2016

1 Min Read
Alphatec Laying Off Dozens of Workers

The spine device company's chief financial officer has also resigned.

Chris Newmarker

Alphatec recently announced that it will cut its workforce by about a fifth amid a $20 million expense cutting plan.

The company had 430 employees as of December 31, 2015, according to its most recent annual report. So the jobs cuts could affect more than 80 workers.

Alphatec already cut 99 workers from its Carlsbad, CA, facility in July 2015. The new layoffs are part of efforts to right-size the company, which has a U.S. focus after the $80 million sale of its international business to Globus Medical last month. (Globus is also providing Alphatec a five-year senior secured credit facility of up to $30 million.)

Also last week, Alphatec announced that its chief financial officer and treasurer Michael O'Neill has resigned after six years the company. Dennis Nelson, who has been the company's vice president of finance and corporate controller since 2011, will serve as interim principal filing and accounting officer while a search is underway for a new CFO.

"Today we have a stronger financial foundation--a much improved balance sheet and enhanced liquidity--that positions us to build to a high quality U.S.-focused business in the future," interim CEO Leslie H. Cross said in a news release.

Alphatec's stock was down more than 7% in value on Monday, closing the day at $6.72 per share.

Chris Newmarker is senior editor of Qmed. Follow him on Twitter at @newmarker.

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