Organizational restructuring leads to 9% job cuts at SurModics
EDEN PRAIRIE, Minn. (AP) — Earlier on Tuesday, SurModics Inc –a drug delivery technology company–declared that it will slash nearly 20 jobs. The organizational restructuring involves the exit of Chief Financial Officer Philip Ankeny as well as human resources vice president Jan Webster, in an attempt to save nearly $1.7 million to $2 million a year.
SurModics is shutting a factory in Owings Mills, Md. The company that staffed 215 employees (headcount until Dec. 1) is expected to slash 9% of its jobs.
In the fiscal fourth quarter that commenced from July 1, SurModics is expected to witness one-time charges totaling $1.1 million to $1.4 million. SurModics said the savings from job cuts would facilitate the expansion and progress of medical device and in vitro diagnostics businesses. The company is seeking strategic alternatives for its pharmaceuticals business.
Timothy Arens, who was senior director and general manager of SurModics’ in vitro diagnostics unit, has now been appointed as the provisional CFO by the company. The in vitro diagnostics unit will be handled by Joseph Stich, who is presently in charge of corporate development and strategy. Human resources will be headed by Byan Philips.
All manufacturing activities presently taking place at the Owings Mills unit will be merged into the company’s Eden Prairie headquarters.
On Tuesday, the shares of SurModics jumped 40 cents, or 4 percent, to $10.42, and remained unaffected after hours.