US-based device firm, Nevro, has announced plans to lay off up to 5% of its workforce as part of a restructuring effort.
The California-based company announced the cuts during its fourth quarter results where it reported worldwide revenue of approximately $116m, growing 2% year-on-year.
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Nevro said that it will lay off 63 members of staff with these redundancies set to be completed by the end of the first quarter of 2024 and focused on internal staff.
Kevin Thornal, CEO of Nevro, said: “This restructuring supports our strategy and allows us to focus our investments to further position Nevro for long-term growth and profitability. This was a difficult decision that impacted some of our team members who have been committed to our mission. We appreciate their dedication and contributions to Nevro.”
The company hopes that the restructuring will see a $14m to $15m positive impact on its revenues by the same time next year, with Nevro set to publish full financial results by the end of February.
The company also said that its 2023 Q4 sales of devices in the indication of Painful Diabetic Neuropathy came in at around $22.4m, representing a growth of 29% over 2022. Over the whole of 2023, the company saw revenues of $77.9m in the same indication, and 63% growth over the full-year of 2022.
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By GlobalDataThornal added: “We are pleased with our preliminary fourth-quarter 2023 revenue which exceeded our expectations and demonstrates that our commercial realignment and execution are delivering stronger and more consistent growth.”
The news follows after Nevro was able to acquire sacroiliac joint fusion device firm, Vyrsa, in December 2023 in a deal valued at around $75m.
It also comes as the company enrolled its first patient as part of a study intended to restore neurological function in patients living with Painful Diabetic Neuropathy. The study is intended to involve 236 patients at multiple centres across the US.
