Globus Medical is laying off staff after the company merged with spine specialist Nuvasive.
In California alone, the company is cutting more than 150 positions, according to documents reviewed by MedTech Dive.
Nuvasive said it “will be laying off a number of its employees” in San Diego, where it was headquartered, according to a Jan. 3 notice shared with MedTech Dive by the California Employment Development Department. The affected employees were notified in the first week of January, and their last day of employment will be March 5, according to the document. Nuvasive’s San Diego office will remain open.
A Globus spokesperson said the company is restructuring but declined to say how many positions were affected.
“As part of our ongoing integration, we recently announced some organizational restructuring across the combined company in support of our committed synergy delivery,” the spokesperson wrote in an email.
The California notice included a list of 157 impacted employees, with positions across engineering and management. Nuvasive had a total of 3,000 employees worldwide as of December 2022.
Former Nuvasive employees in California and Colorado described being affected by “sweeping layoffs” in LinkedIn posts this month, while others in the medtech industry sought to connect them to new jobs. The surgical intelligence team, which developed navigation and other technologies for spine surgery, was among those affected, according to LinkedIn posts.
Globus completed its $3.1 billion acquisition of spine specialist Nuvasive in September. When the companies announced the merger in February, Globus CEO Dan Scavilla said the firms had little overlap.
In November, during the company’s most recent earnings call, Scavilla said organizational designs were in progress and would begin to roll out in early 2024.
“As we've said before, this is not a slash-and-burn exercise. The acquisition payback is not driven by deep spending cuts, and we're not racing to impress the market with a quarterly flash,” he said.
The CEO added the company expects to generate $170 million in synergies from the acquisition over the next three years, beginning in 2024.
“The realization of synergies will come predominantly from the legacy Nuvasive business and will be across most facets of the business with the exception of the commercial portion of the business,” Scavilla said.
Globus shared preliminary fourth-quarter results earlier this month, including sales of $615.5 million for the combined company. For the full year 2023, sales are expected to be $1.57 billion. Globus did not mention layoffs in the filing.
