Edwards Cuts 540 Positions After Divesting Critical Care Biz

Edwards Lifesciences said it will lay off 3% of its global workforce in a “one-time right-sizing of the organization” after recently completing the $4.2 billion sale of its critical care business to Becton, Dickinson and Co (BD).

Many affected employees have already been notified, according to the company, and while some may temporarily stay on to help with the transition of the critical care business and others may have the opportunity to find jobs internally, it is presently unclear what the company will be offering in severance packages. The 3% affected by the layoff amount to about 540 employees. Another about 4,500 employees (around 20% of the company), are moving to BD.

BD agreed to buy Edwards critical care business after it was announced that the company was looking to spin it off. At the time, BD highlighted how the businesses’ patient monitoring technologies and artificial intelligence-enabled clinical decision products would add to its existing business.

Additionally, Edwards underscored its desire to streamline the company to focus on structural heart disease, which hit a surprise snag during Q224. Specifically connected to its transcatheter aortic valve replacement (TAVR), weaker than expected sales in Q2 triggered a selloff of company shares. As a result, the stock dropped more than 30% and has yet to fully recover. Executives attributed the TAVR down wave to cardiologist’s favoring transcatheter mitral and tricuspid valve procedures, for which the company did report sales growth.  

Now focusing on its structural heart business — which includes TAVR, the newer transcatheter mitral and tricuspid therapies, and surgical valves — Edwards is investing in new technologies in the specialty, funded by the sale of the critical care business.

Edwards is reportedly paying a combined $1.2 billion to buy Jenavalve Technology and Endotronix. The first is a maker of a valve to treat aortic regurgitation and the other makes an implantable pulmonary artery pressure sensor for heart failure. Additionally, the company is expected to pay $300 million to buy Innovalve Bio Medical, developing an early stage transcatheter mitral valve replacement, and has agreed to pay €15 million for a stake in Affluent Medical to access some of its mitral tech. In August, Edwards also bought a TAVR system designed to treat aortic regurgitation from Gensis Medtech.