U.K. – Smith+Nephew, a leading global medical device company, has confirmed plans to cut approximately 150 jobs at its Memphis, Tennessee, facility as part of a broader organizational overhaul aimed at enhancing efficiency and agility.
The layoffs come as the company evaluates and adjusts its operational structure to eliminate roles it considers no longer essential.
The company’s spokesperson explained, “As we make improvements to our business efficiency in Memphis, we have identified some activities that are no longer required to be delivered as they are today.”
Impacted employees, the spokesperson added, are being treated “with dignity and respect, in line with our values.”
While Smith+Nephew has not disclosed a timeline for the layoffs, a senior product development engineer noted on LinkedIn that the affected team members were informed their last day would be December 20, 2024.
Smith+Nephew, headquartered in Watford, England, ranks as the world’s 24th-largest medical device maker and the fifth-largest orthopedic device company, per Medical Design & Outsourcing’s 2024 Medtech Big 100 report.
The Memphis site plays a critical role in the production of orthopedic implants, such as knee and hip replacements, as well as trauma products like plating systems.
The layoffs align with ongoing challenges in the orthopedics division. In fact, last month, three major investors urged the company to consider spinning off the struggling segment.
Earlier this year, Smith+Nephew put its 300,000-square-foot Memphis office campus on the market, signaling a shift in its operational footprint.
Industry context: A wave of medtech layoffs
Smith+Nephew’s decision reflects a larger industry-wide trend as medtech companies adapt to economic pressures, rising costs, and shifting healthcare demands.
Companies like Medtronic, Philips, and GE HealthCare have also announced significant workforce reductions in recent years, citing similar objectives of streamlining operations and reallocating resources.
For instance, Medtronic, the world’s largest medtech company, announced layoffs in 2023 as part of its cost-saving initiatives following a decline in sales.
Although the exact number of job cuts remains undisclosed, CEO Geoff Martha mentioned that these layoffs would vary by team, region, and country.
Medtronic, one of the largest medical device firms with nearly 100,000 employees worldwide, attributed the decision to ongoing macroeconomic pressures and restructuring needs.
Similarly, Philips initiated a series of job cuts in response to financial losses tied to its recall of respiratory devices. The company announced multiple rounds of layoffs in 2023, impacting approximately 10,000 employees globally.
Shareholder tensions and executive pay
Adding to its challenges, Smith+Nephew has faced criticism from shareholders regarding executive compensation.
In May, 43% of the company’s investors voted against a proposed 30% raise for CEO Deepak Nath, who earned US $4.7 million in 2023.
Despite the opposition, the board approved the pay hike, promising further shareholder engagement on remuneration matters in future reports.
