
AngioDynamics (NSDQ:ANGO) said it plans to lay off up to 100 workers, or about 7.5% of its workforce, as it consolidates its footprint in upstate New York.
Latham, N.Y.-based AngioDynamics said the plan, which aims to save between $15 million and $18 million over the next 3 years, involves the consolidation of its manufacturing operations at a Glens Falls, N.Y., plant including product lines made at a Queensbury, N.Y., facility, which will become the medtech maker’s distribution center.
The move will also mean layoffs for 80 to 100 workers in the Empire State. AngioDynamics employed about 1,330 workers as of May 31, according to a regulatory filing.
President & CEO Joe DeVivo said the medical device tax played a role in the move but stressed that the consolidation would have occurred anyway.
"Honestly, even though we’re feeling the pressure and the device tax is creating even greater pressure for us to take costs out, this is a really obvious thing,"DeVivo told the Glens Fall Post Star.
New of the consolidation sent ANGO shares up 3.5% to a $15.82 close yesterday.
"Our operational excellence program is focused on creating an organization that is more efficient within the context of its current assets," chief technology officer George Bourne said in prepared remarks. "We believe bringing our New York manufacturing teams under one roof and centralizing our distribution center will result in the propagation of best practices and continuous improvement techniques, while also contributing to our overall efforts to reduce costs."
"The three-year savings of $15 million to $18 million will build on our initial integration savings of $10 million in fiscal 2013 and $5 million in fiscal 2014," CFO Mark Frost added. "This is an opportunity to not only bolster the gains earned through recent acquisitions and the execution of our strategic plan, but to invest in our New York team to position us well for the future by proactively anticipating, and reacting to, the rapidly changing healthcare industry."