Several companies have announced layoffs over the last year to help recover from certain challenges and drive operational performance.
Here are four company layoffs since 2023 that dental leaders should know:
Henry Schein
Henry Schein is planning layoffs as the company continues to recover from a cyberattack that took place in October. The company saw continued reduced sales growth as a result of the 2023 cyber incident.
The company said in its second quarter 2024 financial report that its restructuring plan aims to right-size operations and save the company between $75 million and $100 million, and help the company integrate recent acquisitions. These acquisitions include several dental businesses, according to the company's Form 10-Q filed Aug. 6.
Henry Schein said the restructuring plans are still being decided but that it expects incoming restructuring charges to primarily include severance pay and facility-related costs. The company expects to record restructuring charges in the second half of this year and in 2025.
A spokesperson for Henry Schein declined to provide Crain's New York Business with more details about the layoffs, including when the layoffs would take place and how many people would be affected.
Delta Dental Plans of California
Delta Dental Plans of California filed a WARN report with the state in February announcing its plans to lay off more than 137 employees.
The layoffs went into effect May 17 and affected employees at the company's office at 11185 International Drive in Rancho Cordova, Calif.
Dentsply Sirona
Dentsply Sirona has struggled to regain its footing since it launched an internal audit to look into possible securities fraud in March 2022.
The company's investigation looked into financial reporting matters submitted by employees of the company. The investigation, which concluded in November 2022, found no intentional wrongdoing or fraud but did determine that certain members of senior management violated provisions of the company’s code of ethics and business conduct. The company made several leadership changes since the start of its audit, including adding a new CEO, CFO and chief accounting officer.
In February 2023, Dentsply Sirona announced a restructuring plan aimed at improving operational performance and driving shareholder value creation. The dental supplier planned to reduce its global workforce by approximately 8-10% as part of the plan, with the goal of bringing in at least $200 million in annual cost savings over the following 18 months.
The company announced another round of layoffs in July. This round includes a 2-4% reduction of the company's global workforce with the intention of bringing in between $80 million and $100 million in annual cost savings. The company plans to mostly complete this restructuring plan by the end of 2025.
As part of the restructuring plan, the company is eliminating the position of executive vice president and chief business officer, effective Oct. 1.
SmileDirectClub
SmileDirectClub announced in December 2023 that it would be shutting down its global operations immediately after efforts to recapitalize the business failed. Shelia Fatty, a former employee, filed a lawsuit on behalf of the company's approximately 1,000 other employees alleging that employees were immediately let go from the company without advance notice, allegedly violating the Worker Adjustment and Retraining Notification Act.
A motion to abate the adversary proceeding was granted April 26.