iCad (Nasdaq:ICAD) announced that it enacted a restructuring plan that includes a workforce reduction of approximately 28%.
The Nashua, New Hampshire-based cancer detection and therapy solution developer said that equates to approximately 23 employees. It attributed the restructuring plan to ongoing industry and macroeconomic pressures. iCad’s restructuring aims to support long-term strategic goals and reduce operating expenses.
The company believes this aligns its cost structure to focus on areas that are more likely to generate the best long-term results. It officially committed to this restructuring on March 20.
iCad is the latest medtech company to slash its headcount as macroeconomic pressures continue to mount. In fact, MassDevice has reported on more than 19,000 medtech workers let go across the industry since mid-2022. (Here’s a list of the layoffs that have affected the industry. Have a tip about layoffs at your company or within the industry? Let us know.)
According to an SEC filing, most layoffs come from its detection business unit. The company’s wholly-owned Xoft subsidiary also plans to furlough 12 employees — about half of its workforce. iCad said it expects to incur one-time cash pre-tax restructuring charges of approximately $300,000 in the first half of 2023. This is comprised primarily of one-time severance and benefits payments and employee-related transition costs.
iCad said estimated amounts may change as the company could incur additional costs throughout 2023.
The latest changes for iCad
Earlier this month, iCad announced a major change atop the company. The company accepted the resignation of Stacey Stevens as CEO. She had held the corner office for just about a year and resigned for personal reasons.
New president and CEO, Dana Brown, who signed the SEC filing indicating the layoffs, took over. Stevens will remain with iCad through April 30 to ensure a smooth transition.
In January, the company announced another transition at the top. Its board of directors approved the appointment of Daniel Shea as interim CFO, effective immediately. iCad also launched a search for a full-time CFO. Steve Sarno previously held the interim CFO role.