Conformis Faced with Tough Decision to Furlough One-Third of Its Workforce

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.”

By Omar Ford | MD+DI

Image Credit: Conformis

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About Peter Coffaro 786 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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