Zimmer Holdings Inc. announced Wednesday several organizational changes as part of the company’s ongoing effort to improve customer responsiveness, enhance quality and fuel growth and innovation initiatives.
Among these actions is the first phase of an eventual transition of a number of Warsaw-based logistics functions to an outsourced partner at a national transportation hub, according to a statement released by Zimmer. These changes, essentially the relocation of the company’s distribution center, will result in the elimination of some positions at the company beginning late this year.
In a telephone interview this morning, Garry Clark, director of public relations for Zimmer, said the functions are being transferred to Memphis, Tenn.
Zimmer announced these plans as early as possible to enable impacted employees to be considered for alternative positions at the company. Zimmer anticipates many of the impacted employees will be reassigned. All impacted employees who do not continue with the company will be supported with outplacement benefits and services, according to the statement.
Clark said the transition will commence this fall and not be completed until the end of the first quarter in 2013.
He would not say how many employees will be affected, but Zimmer will try to reassign as many employees as possible.
“I’m not saying every single employee will be reassigned,” Clark said. Some employees also may choose not to move, but Zimmer will reassign as many as it can.
The cost savings achieved by these actions also are intended to partially offset the costs associated with the federal medical device excise tax, which will take effect in 2013, according to the statement. In addition, Zimmer believes the changes to its logistics functions will lower the cost of service delivery to its hospital customers, helping them address challenges brought on by healthcare reform.
