Dentsply Sirona to Implement Restructuring Effort

Denstply Sirona has announced its board approved an organization restructuring plan to improve operational performance and drive shareholder value creation.
 
The company expects the plan to net at least $200 million in annual cost savings over the next 18 months via a new operating model that will streamline the organization, enhance operational efficiency, and position the company to drive future sustainable growth.
 
The model was developed through the company’s ongoing review of business and operations.
 
“The actions we are planning follow our comprehensive review of the business and will enable Dentsply Sirona to improve its execution, build a winning portfolio, return to growth, and generate consistent returns,” Simon Campion, CEO of Dentsply Sirona told the press. “We are acting with urgency to implement this operating model, which we believe will drive overdue organizational integration and improve organizational accountability and efficiency. While actions that impact our team are difficult, I am confident that this plan, along with anticipated outcomes from other workstreams, will set Dentsply Sirona on a trajectory to achieve stronger, more predictable results and add significant value for all stakeholders.”
 
The company’s workforce will be reduced by about 8-10%. Five global business units will be implemented, closely aligned to regional commercial structures. Central functions and infrastructure optimization will be commenced to support efficiency, as well.
 
A senior VP of quality and regulatory role will be created to elevate the quality and regulatory affairs function in the management team. Management structure will be simplified as well.
 
In connection with this plan, the Dentsply Sirona expects to incur up to $165 million in non-recurring charges, the majority of which will be expensed in 2023. The realization of cost savings is expected to accelerate in the second quarter of 2023 and achieve the full run rate within 18 months.