Amedica (NSDQ:AMDA) shares slumped today after the medical device company said it laid off 28% of its workforce as part of an improvement plan.

Salt Lake City-based Amedica said it had cut 25 workers as of Jan. 8 as it looks to lower its overhead by about 35% and cut manufacturing costs by 25%. The moves are aimed at generating annual savings of $6 million to $8 million and achieving break-even cash flow by the 2nd half of 2016, according to a press release.

Amedica, which makes silicon nitride-based biomaterials for medical devices, said it expects to post sales of $23 million to $24 million this year.

Shares of the company, which took itself public early last year at an offering price of $5.75 per share, were down 4.3% to 90¢ apiece in mid-morning trading today.

“We are committed to our shareholders to improving the focus and profitability of Amedica, as these initiatives will strengthen our financial position, and allow us to execute on the development of our core silicon nitride technology," chairman & CEO Dr. Sonny Bal said in prepared remarks. "The difficult decisions we made reflect a thorough review of our business by the leadership team and board of directors. We have smartly positioned Amedica to capture the opportunities for driving silicon nitride sales growth, while expanding the indications for our unique biomaterial. We are very mindful of the impact these changes will have – particularly to our outstanding employees, and will help those who are impacted through this transition phase."