GI Dynamics, Inc., purveyor of the EndoBarrier device for treating type 2 diabetes and obesity, has announced that it is to part with its CFO as part of a broader restructuring that will see a reduction of approximately 10 percent of its workforce.
GI Dynamics, Inc., has endured a few troubled months, first watching its sales lose momentum, and then having its sales activities suspended in Europe, until it sorted its vigilance and reporting system out. We covered both stories a few weeks ago, here.
Bad stuff is so often followed by change, and so it seems is the case at GI Dynamics, with this announcement of staff reductions and that senior management axe falling. If you read between the lines, you could be forgiven for speculating about the company’s future, at least in its current form. When companies start using phrases like “developing a strategic plan,” one wonders how many strategic options they have.
“This restructuring has been made based on a re-evaluation of our corporate strategy and the skills and resources we believe will be required by the Company in the future,” said Michael Dale, president and chief executive officer of GI Dynamics. “I want to thank Bob and the other affected employees for their contributions to GI Dynamics over the past several years. Under Bob’s leadership, the Company has built a solid financial organization, which will serve us well going forward. We will not immediately be replacing Bob’s position as existing finance team members will assume his responsibilities.”
Mr. Dale continued, “The Board and I are continuing to work to develop a strategic plan for the Company in order to fully capitalize on the opportunities before us and fulfill our mission. We look forward to communicating that plan over the next several months.”
Source: GI Dynamics, Inc.