Carl Zeiss Meditec announced that it plans to reduce its workforce by up to 1,000 over the next few years after below-expected performance.
The company reported its financial results for the first half of its fiscal 2025/26, with revenues decreasing by 5.7% year-over-year. Its earnings also decreased by nearly 66%, which the company attributed to negative currency effects, lower revenue and a decrease in gross profit resulting from an unfavorable product mix.
With these results, the company’s board and management team came up with a range of measures to restore “sustainable profitability.” That includes significant job cuts.
Carl Zeiss Meditec said its measures could affect up to 1,000 positions across its global organization over the next three years. It plans to optimize its procurement supply chain and clear out less profitable products as part of this shift. Additionally, the company expects to focus more on R&D through the relocation of activities to cost-efficient countries. Personnel and non-material cost cuts should reduce administrative expenses, the company said.
The company expects a net savings volume greater than $187.3 million, with the measures complemented by targeted initiatives to accelerate revenue growth. Carl Zeiss Meditec noted that it targets a stronger presence in China to achieve this. It also plans to expand cost-efficient capacities outside of China.
In connection with its planned measures, the company expects one-off expenses and investments of up to $175.6 million through fiscal 2028/29.
Read more about layoffs across medtech over the past several years here.
Commentary from Carl Zeiss Meditec officials
Andreas Pecher, president and CEO of Carl Zeiss Meditec AG, said:
“These decisions are painful, yet unavoidable in order to ensure that we remain competitive and successful over the long term. Carl Zeiss Meditec is thereby creating the foundation for what this transformation is ultimately intended to achieve: a strong company with stronger flexibility to invest in innovation and actively shape its market.”
Justus Felix Wehmer, CFO of Carl Zeiss Meditec AG, said:
“In the second quarter of 2025/26, we continue to operate in a challenging market environment characterized by geopolitical and regulatory uncertainties and a reluctance to make investment decisions. With a comprehensive package of measures, we are taking action to improve our cost structure, strengthen profitability and create flexibility for investments in growth and innovation.”
