Ambu recently announced that it would cut 200 employees from its global workforce as part of a cost reduction program.
The Ballerup, Denmark–based company has reported trouble making headway with its single-use scope products.
Ambu has reported a total of 4,500 employees in the past. That means the layoffs would represent about 4% of Ambu’s workforce.
Ambu expects to save roughly DKK kr250 million ($40 million) a year from the cuts, with DKK kr150 million ($24 million) in one-time expenses.
“We have had great successes, but also challenges,” Ambu CEO Britt Meelby Jensen said in an Aug. 3 news release.
She went on: “I have assessed the situation with the leadership team, and it is clear that the single-use market remains very attractive, but also that it is taking longer than expected to penetrate certain segments like duodenoscopy. To strengthen our financial position and flexibility, we have decided to launch a cost reduction program. We will take a more focused approach to innovation and sales execution, while remaining deeply committed to both. We will also adjust to work in a more structured way and mature our processes.
Ambu’s fiscal year ends at the end of September. The company has slashed its organic revenue growth projection to no less than 4%, down from previous guidance of more than 13% growth.
It’s been about three months since Britt Meelby Jensen took over as CEO of Ambu. Ambu Chair Jørgen Jensen said at the time that the company needed to executive differently on its strategy.