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.

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"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.

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