Owens & Minor laid off 61 employees at its distribution center in Franklin, Massachusetts, according to a WARN report filed with the state.
The layoff took place on Feb. 17, according to the notice. It was more than a week before O&M announced a corporate realignment amid mixed fourth-quarter results.
At the time, Owens & Minor said the realignment would include sourcing and demand management, organization structure redesign, network rationalization and operational excellence, and commercial excellence and product profitability enhancement. Company officials expect the overhaul to deliver approximately $30 million of adjusted operating income in 2023, and approximately $200 million by 2025.
There was no mention of potential job cuts associated with the restructuring. Owens & Minor spokespeople could not be immediately reached today for additional information.
Owens & Minor reported 22,500 employees as of the end of 2022, up from 17,300 the year before. During the same year, the company acquired Apria for $1.6 billion.
Layoffs in Franklin but another reminder of medtech challenges
MassDevice has reported on more than 19,000 medtech workers let go across the industry since mid-2022.
Historically, the medical device industry has been resilient to economic headwinds. But companies have had to deal with health provider customers in the U.S. and elsewhere who are grappling with staffing shortages and operational challenges. Hospitals are also more conservative about expenditures, especially big-ticket purchases.
In addition, medical device makers are grappling with macroeconomic challenges including inflation, higher interest rates and supply chain problems.