Dental implant manufacturers-Straumann strokes almost ten percent of the jobs

Specifically, the company reduces the workforce by around 9 percent.Straumann currently employs 7,680 people worldwide, including 595 in Basel.The planned dismantling extends to all countries and functions.

The market for dental election interventions is decommissioned by the pandemic, said CEO Guillaume Daniellot at a conference call.He assumes that a rapid recovery will fail because of the emerging economic development.

Reactions from opened markets indicated that a large proportion of non -urgent dental treatment is postponed.Because of this, he is more of a U-shaped one than a V-shaped recovery of the markets, the company boss said.

Savings in the double -digit million range

For this reason, the previous austerity measures were no longer sufficient.In addition, Straumann was geared towards continued high growth and doubled the staff in the past three years.It is important to align the organization to this new reality, Daniellot continues.

As was already known, the company reduced the short -term costs as well as the work pens and wages because of the crisis.In addition, voluntary cuts of the top management salaries were carried out and investment projects were completed.

With all the measures, Straumann expects savings in the high double -digit million range for 2020 - including the costs for personnel loss and restructuring of around CHF 15 million.In 2021, the job cuts would be expected to save around 30 million.

However, the announced job cuts do not come unexpectedly.Already two weeks ago on the occasion of the presentation of the first quartals, Daniellot said in an interview with AWP that all options are kept open - including a job cut - in order to further reduce the costs if necessary.

Obvious step

For analysts, the announced job cuts is an obvious step.The company secures its financial health, it said in a comment.It is also recognized that Straumann reacted quickly to the changed conditions.

The shares themselves gave up to 11.30 after 10.3 percent to CHF 648, during the overall market (SPI) only 1.16 percent.

Above all, the market participants should have startled that the company, which has used to outdo the high market expectations in recent years, now seems to assume a more difficult scenario than two weeks ago.This is not used to that of a society where it seems to be only upward, it says on the market.However, Straumann management is also known for its notorious conservative forecasts.

(Reuters/AWP)