SRGA - Surgalign announces restructuring to focus on key growth areas expects savings of ~$35M

• Surgalign ( NASDAQ: SRGA ) on Wednesday announced a corporate restructuring plan to focus on key growth areas and improve operational efficiencies.
• Throughout Q4 and into early 2023, Surgalign ( SRGA ) will discontinue some of its lower performing SKUs to redeploy resources across R&D.
• The company will continue brand and product rationalization programs, which are expected to result in a greater focus on products brought to market over the past year and core hardware products with the greatest growth prospects.
• Surgalign ( SRGA ) will initiate new programs to streamline resources and lower future working capital needs, including product rationalization, process improvements and organizational redesign programs.
• These efforts are expected to result in lower non-essential spending, particularly in G&A costs and select capex.
• The company is also exploring further restructuring initiatives, which include but are not limited to, potential paring down, selling or exiting certain aspects of its business.
• As a result of the restructuring, Surgalign ( SRGA ) expects cash savings of ~$30M-$35M compared to 2022.
• To achieve these savings, the firm expects to incur ~$3M-$3.5M in employee-related severance costs and $2.5M-$3.5M in other exit and disposal costs in Q4 and Q1 2023 for total estimated restructuring cost of ~$5.5M- $7M.
• Estimated cash savings are expected to be realized throughout 2023 and programs are anticipated to begin late in Q4 and be substantially complete in H1 2023.

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