Zimmer Biomet expects $60M in exit costs from manufacturing consolidation: 8 things to know

Warsaw, Ind.-based Zimmer Biomet expects to incur about $60 million in exit costs as it reduces and consolidates its manufacturing facilities, according to its quarterly report filed with the SEC for the quarter ended Sept. 30, 2026.

Here are eight things to know:

1. The orthopedic device maker said it initiated the plan in September 2026, with completion expected by the end of 2028. The company’s “Manufacturing Network Optimization Plan” will consolidate facilities in Indiana, New Jersey and Switzerland, according to a Nov. 7 report from Inside INdiana Business.
2. The most significant action is exiting part of the company’s manufacturing facility in Winterthur, Switzerland, and consolidating manufacturing among its Warsaw campuses, according to the filing.
3. The company said it expects the plan to cost about $60 million in exit costs, primarily severance charges. Zimmer Biomet recognized severance charges tied to Winterthur of $13.5 million in the third quarter and $36.5 million in the first nine months of 2026. It expects to pay the severance in 2028, once exit activities are complete.
4. When the company announced the plan in September, it included the potential reduction of up to 580 jobs in Winterthur, according to Inside INdiana Business.
5. Zimmer Biomet plans to wind down production at its Fair Lawn and Farmingdale, N.J., facilities by the end of 2027. Those operations, along with part of the work at its Parsippany, N.J., site, will move to existing sites in Warsaw.
6. The company also plans to consolidate four manufacturing facilities on its North Campus in Warsaw into existing West Campus facilities by the end of 2028. Most of its Warsaw distribution center activity will move to a new site in Indianapolis beginning in early 2027.
7. The company said in a statement that there are no immediate changes to team member roles or responsibilities in Warsaw and that it intends to maintain “virtually all manufacturing roles.” It said it expects output from its Warsaw facilities to increase compared with current production levels, citing the consolidation and its new product introduction roadmap.
8. The consolidation follows the company’s Sept. 3, 2026, announcement that it will move its global headquarters to its West Campus manufacturing facility in Warsaw.

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