Dive Brief:
- Zimmer Biomet has proposed a restructuring of Swiss manufacturing operations that could cause a reduction of up to 580 positions.
- The company, which announced the proposal last week, has yet to make final decisions but has suggested the changes as part of efforts to optimize its manufacturing network.
- Zimmer has started a collective consultation with the works council to assess alternatives and ways to limit the loss of jobs. The company currently employs about 700 people at the site, a spokesperson said in an email to MedTech Dive.
Dive Insight:
Zimmer acquired the manufacturing facility in Winterthur, Switzerland, in 2003 as part of its deal to buy Centerpulse. The U.S. company won a bidding war against Smith & Nephew for the business.
Winterthur remained a key part of the manufacturing network throughout waves of restructuring, which saw Zimmer shutter a former Centerpulse plant in Texas, a California facility and a site in the U.K.
However, Zimmer has reduced its presence in Winterthur in recent years. In 2020, the company moved its European headquarters to the Swiss town of Zug, transferring 130 positions from Winterthur in the process. Zimmer eliminated 73 jobs at Winterthur in 2022.
The proposal to further reduce the headcount at the site is part of Zimmer’s ongoing manufacturing network optimization strategy. Through the strategy, Zimmer said in last week’s announcement that it aims to “simplify its manufacturing footprint and supply chain, improving efficiency and positioning the business for long-term success.”
Zimmer is building a manufacturing plant in Costa Rica. The facility will further the company’s “strategy of increasing supply chain resilience while gaining access to lower-cost geographies,” Zimmer CEO Ivan Tornos said on an earnings call last month.
