anonymous
Guest
anonymous
Guest
Despite assurances made during the Nov 29 all company call, it appears a major reorganization of the U.S. CRM field teams and HQ support functions is planned for the new year. Leadership chose to delay an announcement until after Jan 1 in an attempt to maintain morale and finish the year as strong as possible. The planned changes are required to compensate for continued mediocre sales performance and high SG&A that puts BIO at a competitive disadvantage against other CRM companies. The proposed field plan is said to contain territory consolidations and realignments, including complete exits from some geographies that have been underperforming for years and an end to dedicated sales team pilots. No word yet on 2021 bonuses for eligible employees but forecast year end revenues will not support a Feb payout unless the calculations are manipulated for a third year in a row, which Berlin has signaled it will not support. Field employees should expect contract renegotiations with lower commissions for 2022 and beyond on diagnostics and HV devices. Exploratory discussions are also underway with two organizations that have established non-invasive CV sales forces for possible 3rd party diagnostic device sales starting in 2023 after the next contract renewal cycle. Consolidation and outsourcing will also occur across several HQ departments in an attempt to reduce overhead costs with Berlin HQ picking up several functions that were previously staffed in the US and external vendors leveraged to fill in remaining gaps. The cost cutting is expected to affect 32 employees both in the field and in Lake Oswego with impacts to clinical, customer solutions, marketing, training and sales ops. The hope is that these efforts will help to stabilize the US operation and improve 2022 financial performance,