Surgalign's board of directors on Nov. 8 approved a corporate restructuring program that's expected to save the company $30 million to $35 million in 2023.
The plan aims to put a greater focus on new products introduced in the last 12 months, according to a Nov. 9 company news release. Through the fourth quarter of 2022 and into early 2023, lower performing products will be discontinued so the company can redeploy resources.
Surgalign didn't specify which products would be discontinued.
The company also plans to incur about $3 million to $3.5 million in employee-related severance costs and $2.5 million to $3.5 million in other disposal costs during the fourth quarter of 2022.
"We intend to take aggressive steps to realign our business and improve our market position and value creation opportunities," President and CEO Terry Rich said in the release. "Our focus is on innovation and better serving our customers with the products and support they need to improve patient outcomes. We believe these programs will enable us to generate growth in areas we are focused on, enhance gross margins and lower expenses, and over time, improve our financial position by freeing up resources to invest in areas we believe hold the greatest promise. Implementation of these programs will be dependent on the outcome of financing initiatives currently underway."