Steris
(NYSE: STE)
has disclosed more details about the layoffs taking place in its previously announced restructuring.
The Mentor, Ohio–based company — a major provider of sterilization products and services — said in an SEC filing that less than 300 positions are being eliminated. That’s about 1.7% of its 18,000-strong global workforce.
Steris said the restructuring is meant to enhance profitability and improve efficiency. The plan is to have the actions mostly completed by the end of fiscal year 2025, with resulting improvements to income from operations of approximately $25 million a year.
The company previously disclosed that the restructuring includes its Healthcare surgical capital business in Europe. Other actions include product rationalizations, facility consolidations and the impairment of an internally developed X-ray accelerator.
In April, Steris announced that it would sell its dental segment to Peak Rock Capital for $787.5 million. In addition, it completed the divestiture of its Controlled Environment Services business within its Life Sciences segment.
Steris and other companies in the medical device sterilization space are facing a shifting landscape as the EPA seeks to reduce emissions of ethylene oxide (also referred to as EtO or EO), which is widely used. The FDA, commercial sterilizers such as Steris, and medtech manufacturers have already sought EtO alternatives and emission reductions to lessen the health risks of emissions to workers and communities.
One possible alternative to EtO is vaporized hydrogen peroxide (VHP). Steris provides VHP sterilization services and sells VHP chambers and equipment.
