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

March 25, 2020 COVID-19, Layoffs, Medical Devices, Medical Technology, Orthopedics

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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Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and MedReps.com. Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.