Motus GI to Axe 45% of Workforce, Explore Financial Alternatives

Motus GI Holdings, an endoscopy solutions medical technology company, today announced it plans to eliminate approximately 45% of its workforce as a part of a major restructuring program approved by the company’s board of directors. The program’s objective is to preserve capital by initially reducing quarterly operating costs by approximately 35% on a go forward basis. The layoffs are expected to be completed during Q123 along with other cost reduction methods. Additionally, the company expects to incur a non-recurring charge of approximately $1 to $2 million in Q123 related to the restructuring.

“The planned restructuring is intended to position the company to explore all strategic alternatives, continue supporting its existing customers utilizing Pure-Vu EVS for colonoscopies, as well as targeting pipeline opportunities with contracted health systems,” wrote the company press release.

The layoffs come in conjunction with news that Motus GI has initiated a process to explore a range of strategic and financing alternatives “focused on maximizing stockholder value and accelerating commercialization of the Pure-Vu System.” With Lake Street Capital Markets acting as an advisor during the process, the company is considering potential strategic alternatives including an acquisition, merger, reverse merger, other business combination, sale of assets, licensing, or other strategic transactions.

Despite the news, the company intends to continue to execute its Pure-Vu EVS Gastro development program.