Neuronetics Implements Strategic Reorganization Resulting in Workforce Reduction and Anticipated Savings

Neuronetics, Inc. (NASDAQ: STIM) recently announced the implementation of a strategic reorganization aimed at enhancing the company’s focus on growth. The reorganization, which took effect on November 8, 2024, resulted in a reduction of approximately 10% of the company’s workforce. This move is part of Neuronetics’ efforts to sharpen its commercial strategy, emphasizing the highest growth drivers moving forward.

The restructuring is anticipated to not only streamline operations but also improve operational efficiency. Neuronetics expects to achieve annualized cash savings exceeding $3.5 million post-reorganization. As a result of the reduction in force, the company foresees recognizing approximately $0.4 million in total expenses related to severance and associated benefits for affected employees. These expenses primarily consist of severance payments and related benefits.

While Neuronetics aims for improved efficiency and a more focused approach post-reorganization, the company acknowledges the possibility of incurring additional charges or cash expenditures due to unforeseen events associated with the restructuring.

In a statement, Neuronetics included a “safe harbor” disclosure under the Private Securities Litigation Reform Act of 1995. The company recognized the presence of forward-looking statements within the current report, emphasizing that such statements are subject to uncertainties and risks. These forward-looking statements cover various aspects such as business outlook, financial performance, and the proposed transaction between Greenbrook TMS Inc. and Neuronetics.

Neuronetics highlighted factors that could cause actual events to differ, including uncertainties related to financial projections, market conditions, regulatory approvals, and operational challenges. The company remains vigilant about potential risks and uncertainties that could impact the success of the reorganization and the proposed transaction.

Neuronetics also disclosed that readers should refrain from overly relying on forward-looking statements as events predicted within these statements may not necessarily transpire as expected. The company committed to updating or revising these statements if required by law but advised caution when interpreting these projections.

Following the strategic reorganization, Neuronetics filed this current report with the Securities and Exchange Commission (SEC) on November 12, 2024, signing off on the document through W. Andrew Macan, EVP, GC & Chief Compliance Officer. The company remains focused on optimizing its operations and capitalizing on growth opportunities despite the inherent uncertainties within the current market landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Neuronetics’s 8K filing here.

Neuronetics Company Profile

Neuronetics, Inc, a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder.