Zimmer Biomet (NYSE:ZBH) plans to restructure operations at its Winterthur, Switzerland, manufacturing plant.
In a news release posted in Europe yesterday, the Warsaw, Indiana–based orthopedic device giant said it proposed cutting 580 jobs and had begun a works council collective consultation to evaluate alternatives and limit job losses. ZB cautioned it had not made a final decision about the restructuring.
The job cuts would represent 3.4% of the 17,000 positions that the company listed in its most recent annual report.
According to Zimmer Biomet, the proposed changes are part of its manufacturing network optimization strategy. The company is seeking to simplify its manufacturing footprint and supply chain, improving efficiency and setting itself up for longterm success.
“We continually review our global supply chain network to ensure we are best positioned to serve our customers and their patients and strengthen the business for the long term,” said Elizabeth Gauthier, manufacturing director at Zimmer Switzerland Manufacturing GmbH.
“We recognize the significance of this site, its long-standing heritage in Winterthur and the important contribution of our team there. We fully recognize the potential impact this proposal may have on our team members, their families and the broader community, and we have given those considerations the careful and thoughtful attention they deserve. Our immediate priority is to support our team members through a meaningful consultation process.”
According to Blue News in Switzerland, what was then Zimmer acquired the Winterthur site through its 2003 acquisition of Swiss orthopedic company Centerpulse, paying more than $3 billion to win a bidding war with British ortho rival Smith+Nephew. The site at times has served as a regional headquarters for ZB.
Also yesterday, Zimmer Biomet announced that it is shaking up leadership in its Americas and Global Business Group organizations as the orthopedic device giant prepares to launch a next-gen ortho robot next year.
