Surgical Instrument provider Integra LifeSciences ($IART) laid off 49 employees in Massachusetts as part of a cost-saving initiative, MassDevice reports, citing a public notice filed under the federal Worker Adjustment and Retraining Notification Act.
The layoffs occurred between Dec. 5 and Dec. 31, the article says. Integra has a manufacturing and repair center in Burlington, MA.
The company foreshadowed the move a while back in its annual report for 2013, saying in an SEC filing, "Our operating footprint is more complex and less efficient than it can be, in part because we have not taken full advantage of the more than 40 acquisitions in our history. While we have demonstrated that we can quickly and profitably integrate new products and businesses, and have an active program to evaluate similar opportunities, we must simplify our structure and processes into singular, common systems in order to continue to add scale efficiently and profitably."
Since then, Integra has acquired Covidien's Confluent Surgical soft tissue repair products for $235 million, as well as ear, nose and throat (ENT) and laparoscopy instrumentation lines from Medtronic ($MDT) for $60 million, giving the company more opportunities to simplify its footprint.
The same SEC filing also notes that Integra had initiated "cost-saving initiatives to consolidate manufacturing and distribution facilities and transfer activities, implement a global enterprise resource planning system, eliminate duplicative positions, realign various sales and marketing activities, and to expand and upgrade production capacity for our regenerative medicine products." The filing goes on to say that the facility's consolidation drive will contribute to expenses in 2014, but "will contribute to our financial results in 2015 and beyond."
Integra also said it plans to optimize its manufacturing distribution footprint around 5 centers of excellence, presumably not including Massachusetts.
Last year, the Plainsboro, NJ, company announced plans to spin off its spinal implants and orthobiologics businesses into a new, publicly traded company dubbed SeaSpine. In the spinoff announcement Integra said it plans to focus on orthopedic and tissue technologies focused on the extremities, wound care, and specialty surgical solutions in neurosurgery and surgical instrumentation.