Nevro announces restructuring plan, 5% workforce reduction

In a regulatory filing, Nevro announced that on January 6, 2024, the company approved a restructuring plan that includes laying off 63 employees, which represented approximately 5% of the company’s total number of employees. The Restructuring affects employees in corporate, sales and marketing, and operations positions but is largely focused on internally facing roles within the company. This action was taken to support the company’s strategy and allow it to focus its investments to further position the company for long-term growth and profitability. The company expects the Restructuring to have a $14M-$15M positive impact on its full-year 2024 adjusted EBITDA, which will be largely offset by normal operating expense increases, including inflation, merit increases and other acquisition-related expenses. In addition, GAAP operating expenses in the first quarter of 2024 will reflect a $5M-$6M restructuring charge, consisting of one-time severance and other termination benefit costs. The company expects that the Restructuring, including related cash payments, will be substantially complete by the end of the first quarter of 2024.