SurModics, Inc., a provider of drug delivery and surface modification technologies to the healthcare industry, announced Wednesday a reduction of approximately 9 percent of its total workforce.
These cuts come about two months after SurModics lost a contract with Johnson & Johnson, through its Cordis subsidiary, which discontinued its Cypher brand of drug-coated stents.
The struggling company also cut its workforce in October and March of 2010.
Included in the most recent reduction are Philip D. Ankeny, senior vice president and CFO, and Jan M. Webster, vice president, human resources.
"This is a critical transition for SurModics to implement the components of our strategic plan that focus and position our business for maximum long-term success," said Gary Maharaj, President and CEO. "Importantly, we expect to maintain our commitment to R&D investment to drive growth opportunities in our core Medical Device and IVD businesses."
"While a workforce reduction is always a very difficult decision, it was necessary to enable us to achieve our objectives,” continued Maharaj. “We thank our affected employees for their contributions and wish them well in their future endeavors."
SurModics also announced the consolidation of its BioFX product manufacturing operations from Owings Mills, Md., into its corporate headquarters located in Eden Prairie, Minn.
As a result of these initiatives, SurModics expects to take one-time charges of approximately $1.1 to $1.4 million in the fourth quarter of FY 2011. Also, in connection with these initiatives, SurModics expects to save approximately $1.7 to $2.0 million on an annualized basis.