Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
UK-based medical technology firm Smith & Nephew will cut 550 jobs worldwide over the next three years, out of a global workforce of around 11,000. It has not been reported in which countries the job losses will occur.
Details of the plans were announced on 2 February 2012. Some 220 jobs have already been lost as part of a cost-saving strategy announced in November 2011, while another 550 reductions will take place over the next three years. The cuts will mainly affect back-office staff.
The firm is Europe's largest artificial hip and knee manufacturer and also has endoscopy and advanced wound management units. Patients' decisions to defer elective surgery during the economic downturn have been highlighted as an explanation for falling margins. Chief executive Olivier Bohuon has predicted that economic conditions will continue to affect the business.
Media reports state that artificial hip joints with a metal-on-metal design have been under scrutiny following safety concerns about other manufacturers' products. This is a second reason for declining profitability in the firm's artificial hip division. However, the press has reported on assurances from Smith & Nephew that their products are safe and effective.
Eurofound (2012), Smith & Nephew, Internal restructuring in World, factsheet number 73058, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/73058.