Charlotte-based Dentsply Sirona, the largest manufacturer of professional dental products and technologies, plans to lay off as many as 640 workers across the globe as part of a restructuring.
The company, which has approximately 16,000 employees and operations in 40 countries, said the restructuring would save up to $100 million annually in costs.
The restructuring was approved by its board of directors on Monday and will involve cutting 2% to 4% of Dentsply Sirona’s workforce, according to a filing Wednesday with the Securities and Exchange Commission. That would be between 320 and 640 workers, according to the employee number on its website.
The company expects to incur between $40 million and $50 million in non-recurring restructuring charges, primarily related to costs due to employee transition, severance payments and employee benefits, this year and next year.
The company said that the restructuring plan eliminated the position of executive vice president and chief business officer, which is currently held by Andreas G. Frank, effective Oct. 1.
Chief Accounting Officer Richard M. Wagner has also resigned, effective Aug. 16, to pursue another opportunity.
Dentsply’s shares rose 85 cents, or 3.2%, to $27.63 in Wednesday morning trading. The company also reported second-quarter financial results that were slightly below Wall Street expectations. The company reported revenue of $984 million versus the average analyst consensus of $995.4 million and earnings of 49 cents per share, a penny shy of the average analyst consensus.
It also lowered its 2024 revenue projection to between $3.86 billion and $3.9 billion. Wall Street analysts currently expect revenue of $3.93 billion. A spokeswoman said that the restructuring was done to help the company reach its goal of adjusted earnings per share of $3 in 2026.
The company’s roots go back to 19th century New York and Germany. Dentsply International was founded as Dentists’ Supply Co. in 1899 in New York City, and the company that became Sirona Dental Systems was founded in 1877 in Erlangen, Germany. The companies merged in 2016.
Dentsply Sirona moved its headquarters to Charlotte in 2019. At the time, the company had 145 employees in the area and promised to add another 320 during the next three years.
“While certain functional areas will be impacted, the Company expects many new opportunities for employees, across the organization,” said spokeswoman Marion Par-Weixlberger in a statement. “For example, by Q1 2025, Dentsply Sirona intends to recruit, hire, train and deploy at least 100 Dentsply Sirona inside sales representatives. In the Charlotte area, Dentsply Sirona currently employs approximately 300 people.”
Ballantyne Park is home to the Dentsply Sirona Academy, a training facility for dental professionals that provides courses and curriculums for the company’s different products.