ZimVie Eliminates 5% of Workforce

Ranked 82 on MD+DI's recently updated list of Top 100 Medical Device Companies, the Zimmer Biomet spinout is trying to improve its chances for future success through restructuring activities.

ZimVie, the dental and spine company that spun out of Zimmer Biomet last year, is cutting its global workforce by 5% (roughly 135 employees), in addition to reductions in discretionary spending. The Westminster, CO-based company said the restructuring actions are expected to generate between $17 million and $20 million in annualized net savings by 2024.

CEO Vafa Jamali said during the company's first-quarter earnings call that the restructuring actions align with the plan laid out at the time of the spin. So, the layoffs weren't entirely unexpected.

Highlights from the quarter

In addition to the restructuring activities, ZimVie highlighted several recent business moves with its earnings report this week:

ODEP provides the objective, systematic review and rating of the strength of evidence supporting the performance of medical devices. Its rating is comprised of several components: The numerical portion of the rating indicates the number of years of clinical evidence, with 10 years representing full compliance with the benchmark from the National Institute for Health and Care Excellence, which provides national guidance and advice to improve health and social care in the United Kingdom. The “A” designates “strong evidence” based on a generally higher number of patients (giving greater confidence in the results presented), with all patients being subject to follow-up (their outcomes recorded). Finally, the addition of the star denotes a benchmark replacement rate of less than 1 in 20 (5%) at 10 years. There is no higher quality rating than A*, ZimVie noted.