As a result of this action, the company estimates that it will generate annual savings of approximately $5.4 million beginning in 2009. During the fourth quarter of 2008, the company will incur a one-time charge of approximately $1.8 million related to severance costs. As of September 30, 2008, TomoTherapy had 721 employees.
Fred Robertson, CEO of TomoTherapy, said: “This action, while difficult, was a necessary response to the slowing growth TomoTherapy is experiencing as a result of the challenging economic conditions. It is essential in the current environment to effectively manage costs while continuing to provide outstanding service and support to our global customer base.
“We also remain committed to extending the clinical advantages of our leading TomoTherapy Hi Art system, which provides superior quality of care to cancer patients around the world.”