Nevro Lays Off 5% of Workforce

Just months after Nevro, a pain-treatment medical device company, penned a $75 million dollar deal to acquire Vyrsa Technologies, the company this week announced plans to lay off a total of 63 employees — 5% of its total workforce — from largely “internally facing roles” in corporate, sales and marketing, and operations, as part of a restructuring effort.

The restructuring, according to Nevro, “supports our strategy and allows us to focus our investments to further position Nevro for long-term growth and profitability,” said Kevin Thornal, Nevro CEO, in the company’s preliminary fourth-quarter and full-year 2023 revenue call. “This was a difficult decision that impacts some of our team members who have been committed to our mission. We appreciate their dedication and contributions to Nevro. As we look ahead, we remain focused on bringing innovative products to market, working closely with physicians treating patients living with chronic pain and creating value for all our stakeholders."

The layoffs will be completed by the end of Q124.

Nevro said it expects the restructuring to have a $14 million to $15 million positive impact on its full year 2024 adjusted EBITDA, largely offsetting the company’s operating expense increases, including inflation, merit increases, and other acquisition-related expenses.

In the financial call, the company also reported that, excluding acquisition-related operating expenses, it expects 2024 operating expenses to be approximately flat to that of 2023. Additionally, GAAP operating expenses in the Q124 will reflect a $5 million to $6 million restructuring charge. Q124 saw a Q423 world-wide revenue of approximately $116 million, up 2% as reported and 1% currency year over year. The company has a world-wide revenue of approximately $425 million in 2023, representing 5% growth.

Nevro said it expects to report a complete version of its Q4 and full-year 2023 financial results and provide additional 2024 financial guidance in February.