Ambu announced today that it has completed nearly three-quarters of its workforce reduction as part of its cost reduction program.
The Ballerup, Denmark–based developer of single-use scopes announced earlier this month that it was set to let go of 200 employees as it looked to cut costs. The reduction program aims to strengthen Ambu’s free cash flow and improve profitability to support future growth.
Ambu anticipates savings of roughly DKK kr250 million ($40 million) per year from the cuts, with DKK kr150 million ($24 million) expected in one-time expenses.
In an interim report for the company’s third quarter, Ambu said that, as of today, 70% of the reductions concerning its global workforce have been completed.
Ambu has reported a total of 4,500 employees in the past, meaning that the layoffs would represent approximately 4% of its workforce.
Challenges for the bronchoscopy business
Britt Meelby Jensen, CEO of Ambu, said in a news release that the company continues to deliver “rapid growth” in urology and ENT, while strong performances in anesthesia and PMD have also been reported. However, the company’s bronchoscopy business was impacted by lower ICU admissions and COVID-19-related inventory, plus a high baseline, the CEO said.
“I am excited about the opportunities in the bronchoscopy market with approval of our new advanced bronchoscopy solution in Europe and the U.S. in May and July, respectively. For GI, we experienced a slower uptake than expected,” Britt Meelby Jensen said in the release. “For the cost reduction program announced on 3 August 2022, we are progressing as planned, with approximately 70% of the reductions concerning our global workforce completed.
“Looking ahead, we are excited to progress Ambu’s potential as a strong and sustainable high-growth company, creating value for the customers and patients we serve.”
Ambu is sticking with the financial guidance it presented when announcing the cost reduction program. The company expects organic growth totaling no less than 4% year-over-year and EBIT margin (before special items) to come in at no less than 2%.