Dentsply Sirona will restructure its organization to improve operational performance and save at least $200 million annually.
Dentsply Sirona announced an organizational restructuring plan intended to improve operational performance and drive shareholder value creation.
The plan is anticipated to achieve at least $200 million in annual cost savings over the next 18 months through a new operating model that will streamline the organization, enhance operational efficiency, and position Dentsply Sirona to drive future sustainable growth.
This model was developed through the company’s ongoing review of its business and operations.
“The actions we are planning follow our comprehensive review of the business and will enable Dentsply Sirona to improve its execution, build a winning portfolio, return to growth, and generate consistent returns,” said Simon Campion, Chief Executive Officer. “While actions that impact our team are difficult, I am confident that this plan, along with anticipated outcomes from other workstreams, will set Dentsply Sirona on a trajectory to achieve stronger, more predictable results and add significant value for all stakeholders.”
The restructuring plan consists of the following planned measures:
- A reduction in the global workforce of approximately 8% to 10%.
- Implementation of five global business units – designed to drive enterprise integration and align the product portfolio with the company’s growth strategy. This global business unit structure is closely aligned to the company’s regional commercial structures, facilitating improved transparency and communication.
- Commencement of central functions and infrastructure optimization to support the efficiency of the overall organization.
- Creation of a senior vice president of quality and regulatory role, designed to elevate the quality and regulatory affairs function within the management team. The SVP will be responsible for overseeing these functions across the entire organization.
- Simplification of management structure to bring the company in line with industry best practices.
- Delivering cost savings to fund critical investments in 2023 and beyond to position the company for sustainable future growth.
The proposed changes are subject to co-determination processes with employee representative groups in countries where required.
The cost savings are expected to fund critical growth investments in the future across areas such as global commercial organization, information technology, and compliance, enabling the company to enhance and sustain profitability, accelerate enterprise digitalization, and succeed in aligners and implants.
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