Abstract
Smith and Nephew has recently combined its Orthopaedic and Trauma Business with its Endoscopy business. In the US the entities operated from two sites, Endoscopy in Andover Mass and Orthopaedics/Trauma division operating out of Memphis with 2000 employees. It is this site which will suffer the job losses as the company endeavours to reduce duplication of roles in its new combined Advanced Surgical Devices Division.
Background
Back in November medlatest reported on Smith and Nephew’s quarterly results and predicted efficiency savings, likely to mean job losses in Orthopaedics, not least because this division had reportedly lagged the others in taking efficiency measures to that point. Combined with pressure on pricing and weaker US performance compared with international in Orthopaedics this news is sadly unsurprising.
Company comments
Smith & Nephew spokesman Andrew Burns told The Memphis Daily News. “If you couple with that (the restructuring) the tough or challenging economic environment, regulatory environment and ongoing cost of pressure in our established market, it was having a negative impact on growth across the entire health care industry and Smith & Nephew is no exception.”
Advanced Surgical Devices Division
The company claims its new combined orthopedics and endoscopy management team will work to implement tighter controls over spending, which it hopes will improve its orthopedics margin.
Already, as part of the restructuring, Joseph DeVivo, the company’s Memphis-based president of Orthopaedic Reconstruction and Trauma, left Smith & Nephew in August.
Smith & Nephew last month said it had established the leadership team for the new Advanced Surgical Devices division and has started to reorganize its structure and operating model to meet the requirements of established markets. Its new combined division is led by Andover-based Mike Frazzette, who has served as president of the endoscopy division since 2006.
Investing in emerging markets
Spokesman Andrew Burns said the new model will also allow Smith & Nephew “to invest more in emerging markets, where there’s greater potential for growth right now.”
Source: medlatest staff, Memphis Daily News
published: December 14, 2011 in: Arthroscopy, Endoscopy, Hip, Knee, News, Products, Shoulder, Smith & Nephew, Sports, Trauma, USA