Layoffs: Accuray to cut 13% of its workforce amid "strategic transformation"

January 4, 2013 by MassDevice staff

New Accuray president & CEO Joshua Levine plans to cut about 13% of the company's workers in efforts to execute a "strategic transformation" that will save the company about $40 million per year.

Accuray logo

Sunnyvale, Calif.-based radiotherapy devices maker Accuray (NSDQ:ARAY) will lay off about 13% of its global workforce, mostly in the U.S., the company reported this week.

Accuray made the announcement upon releasing its preliminary 2nd quarter 2013 financial results, in which the company noted a 45%-50% decline in product revenue.

The news sent ARAY shares down more than 20% to trade at $5.40, compared with last night's close at $6.78.

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Accuray expects to report 2nd quarter sales in the range of $72-$75 million, compared with $106.4 million in revenue reported for the same period last year. Net losses were projected in the range of $24-$30 million for Q2 2013.

The device maker attributed the shortfall to "manufacturing and supply related issues" which kept the company from realizing sales from new products as well as to "commercial focus and salesforce transitional issues," according to a press release.

In response Accuray launched a restructuring initiative aimed at directing resources to sales and marketing, resulting in layoffs for about 13% of the company's workers.