The custom orthopedics company said it was furloughing 80 employees because of sharp declines in elective procedures resulting from the coronavirus pandemic. The news comes as President Trump announced he was pushing to ‘reopen’ the economy by Easter.
Conformis is furloughing one-third of its workforce citing a sharp decline in elective procedures because of the novel coronavirus (COVID-19). In addition to the measure, the custom orthopedics implant company said it us withdrawing its 3% to 6% product revenue growth target for 2020.
The Billerica, MA-based company said its product areas of knee and hip surgery are being impacted in ‘unprecedented ways.’ About 80 employees would be furloughed.
“We’ve taken a very aggressive early action here with [Monday’s] announcement,” Conformis President and CEO Mark Augusti said during a call with investors. “We’re certainly not at the bone so-to-speak. There are certainly more actions we can do. But at this point, we’ve looked at a significant decrease in demand over eight weeks.”
Augusti said elective procedures have not come to a full stop.
“They’re looking to push out the surgery date to the time they will be able to do surgery,” he said of doctors doing the procedures. “I think that’s the hardest thing right now – trying to assess how long that might be. But it’s a moving target. I expect it to continue this way for the next couple of weeks.”
Image Credit: Conformis