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Greenbrook TMS announces restructuring, 20%-25% workforce reduction
The Fly

Greenbrook TMS announces restructuring, 20%-25% workforce reduction

Greenbrook TMS announces that it is embarking on a comprehensive restructuring plan that aims to strengthen the company by leveraging its scale to further reduce complexity, streamlining its operating model and driving operational efficiencies to achieve profitability. The Restructuring Plan is aimed at focusing operations to the company’s most profitable treatment centers across the United States, streamlining of patient engagement and delivery of care while reducing facility and logistical overhead. These changes also include a workforce reduction that is expected to impact approximately 20%-25% of the company’s current staff. The Restructuring Plan is also expected to enable Greenbrook to concentrate marketing spend for more effective outreach, while continuing to serve patients in all of its current core markets more efficiently through reduced staffing requirements, all without compromising quality of care. As part of this initiative, the company plans to decrease its operating footprint by closing 50 treatment centers over the next 45 days, allowing management to focus on the remaining 133 treatment centers, which have generated approaching 90% of the company’s total revenue in Q4 2022. The remaining treatment centers will continue clinical offerings of Transcranial Magnetic Stimulation and a select and growing number of centers will continue offering Spravato therapy, and we expect that these remaining centers will provide a strong foundation to innovate and develop new product lines. This Restructuring Plan is intended to fortify the company’s path to achieve sustainable profitability and long-term growth. Together, these reductions to the company’s footprint, headcount and operating expenses are estimated to result in cost savings of between $22M-$25M on an annualized run-rate basis when fully implemented. Restructuring and related charges associated with these actions are estimated to be in the range of $1M-$2M and are expected to be substantially incurred by the end of 2023.

Published first on TheFly

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