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news.Kinetic Concepts, a medical technology company, has announced cost reduction initiatives to improve its cost structure and maximize its growth potential. The company expects to reduce its global workforce by approximately 4%, or about 300 employees.
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Kinetic Concepts (KCI) said that the initiatives will enhance its potential to increase shareholder value and improve operational efficiency and effectiveness by streamlining its organizational structure and workforce and evaluating expenditures.
As part of its multi-pronged cost reduction efforts, KCI has created a global shared services team (GSST). An undertaking designed to improve the company’s overall productivity and performance, the GSST will help optimize KCI’s resources through improved process design and organizational structure, said KCI.
KCI estimates that the GSST initiatives will yield approximately $100 million in annualized savings by the end of 2011.
Catherine Burzik, president and CEO of KCI, said: “During this global economic downturn, we believe it is prudent to further streamline our organization and reduce expenses to enable our vision of continued global expansion and investment in R&D.”