Alphatec (NSDQ:ATEC) said this week that it laid of 20% of its workforce and announced the resignation of its CFO & treasurer, Michael O’Neill, effective Oct. 5.
The Carlsbad, Calif.-based company reported 430 employees as of Dec. 31, 2015, which would mean job cuts for about 86 workers. Alphatec said it’s making the move as part of its plan to save $20 million a year after the sale of its international business last month for $80 million to Globus Medical (NYSE:GMED).
“This reduction in force is a significant part of a broader plan, which the company has previously outlined, to reduce operating expenses by $20 million following the sale of its international business to Globus Medical and to more appropriately size the company’s resources to better reflect the needs of a U.S.-focused organization,” Alphatec said.
O’Neill was replaced on an interim basis by finance VP & controller Dennis Nelson while a new CFO is sought, Alphatec said. The company is keeping its corporate recruiters busy: Last month chairman Leslie Cross returned to the corner office as interim CEO, succeeding James Corbett. The company also promoted COO Michael Plunkett to president & COO and named NuVasive Inc. (NSDQ:NUVA) veteran Craig Hunsaker to the newly created post of people & culture EVP.
“I would like to thank Mike for all of his contributions to Alphatec over the past 6 years,” Cross said in prepared remarks. “Today we have a stronger financial foundation – a much-improved balance sheet and enhanced liquidity – that positions us to build to a high-quality, U.S.-focused business in the future.
“Dennis is a talented and experienced financial leader. Given his intimate knowledge of Alphatec and our financials, we are confident that Dennis will do an excellent job as we engage in our search for a CFO. We wish Mike all the best in his future endeavors. I would also like to express my appreciation to each of the employees affected by today’s announcement for their dedication and many contributions to Alphatec over the years,” he said.
Alphatec also said it granted an inducement award to Hunsaker consisting of 173,322 restricted stock units and $750,000 in stock-based performance awards.