Layoffs: Smith & Nephew cuts 80 in Memphis orthopedics arm

December 14, 2011 by MassDevice staff

Smith & Nephew eliminates 80 positions as it combines its Memphis-based orthopedic branch with its Mass.-based endoscopy branch.

Smith & Nephew logo

Smith & Nephew (NYSE:SNN) laid off 80 employees following the merger of its Andover, Mass.-based endoscopy unit and its Memphis, Tenn.-based orthopedic reconstruction unit, according to a report in the Memphis Commercial Appeal.

The British orthopedic giant announced that it would combine the two units in July, alongside the resignation of Memphis-based orthopaedic reconstruction president Joseph DeVivo.

No layoffs were expected as a result of the move, SNN spokesman Andrew Burns said at the time, but apparently resulted in 80 jobs cut in Memphis and another 70 worldwide.

Sign up to get our free newsletters delivered straight to your inbox

"There were duplications in roles when we bring these two division together," Burns told the newspaper. "You couple that with a more challenging economic and regulatory environment in some of our more established markets, it's an overall negative effect on our entire industry, not just Smith & Nephew."

The two units made up about 77 percent of Smith & Nephew's total global sales during the nine months ended October 1.

Smith & Nephew posted profits of $133 million, or 14.9 cents per share, on sales of $1.03 billion for the quarter – a top-line increase of 9.7 percent when compared with the $941 million in revenues reported for the same period last year. But Q3 2010 profits were $137 million, or 15.4 cents per share.