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Dive Brief:

• Smith & Nephew is cutting about 150 jobs in Memphis, Tennessee, primarily in manufacturing, as part of an ongoing productivity improvement program, the company said Friday in an emailed statement.

• “In Memphis we have identified some activities that are no longer required to be delivered as they are today,” a spokesperson wrote. “Unfortunately, this has meant that we are making around 150 roles redundant, predominantly in manufacturing, and most will transition by year end.” The job cuts were first reported by MassDevice.

• U.K.-based Smith & Nephew has put its commercial office on Goodlett Farms Parkway in Memphis up for sale, and the company plans to move to a smaller commercial office in the city. However, the job cuts are unrelated to the building sale, the spokesperson said, adding, “Memphis remains an important commercial and manufacturing hub for Smith+Nephew.”

Dive Insight:

Smith & Nephew, a maker of hip and knee implants and wound care systems, initiated a plan in 2021 aimed at regaining momentum in its underperforming orthopedics unit and improving productivity and efficiency to drive overall growth. The strategy included streamlining the orthopedics portfolio and a review of the manufacturing network.

The company employs 2,300 people in the Memphis area, where its orthopedics division is based, according to the Memphis Business Journal.

Since 2022, Smith & Nephew has announced the closure of four smaller orthopedics facilities outside the U.S. “These previous closures were part of the same productivity improvement programme, with work consolidating into our larger facilities, including Memphis,” the spokesperson said.

Still, the company lowered its full-year revenue growth forecast in October, citing weaker-than-expected demand in China. Orthopedics revenue grew 2.4% year over year in the third quarter.

Despite the tempered outlook, Deepak Nath, who stepped in as CEO in April 2022, said the turnaround plan was driving financial improvements. While acknowledging more to do, the CEO said the company was “on the right course.”

In November, however, the Financial Times reported that three top Smith & Nephew investors were calling for a spinoff of the orthopedics business if management could not improve its performance.

In its latest investor presentation, Smith & Nephew said its joint reconstruction business was making progress beyond initial targets set in the improvement plan. The company noted one in three legacy hip and knee brands had been phased out.