Henry Schein is reportedly planning layoffs as the company continues to recover from a cyberattack that took place in October.
Eight notes:
1. Henry Schein determined in October 2023 that part of its manufacturing and distribution businesses suffered a cybersecurity incident, which led the company to take some systems offline.
2. The supplier reported a 10.5% decline in worldwide sales growth during the fourth quarter of 2023 as a result of the cybersecurity incident.
3. The company's worldwide sales growth increased by 3.7% during the first quarter of this year, but the company still reported reduced sales growth due to the incident.
4. The company said in its second quarter 2024 financial report that its restructuring plan aims to right-size operations and save the company between $75 million and $100 million, and help the company integrate recent acquisitions. These acquisitions include several dental businesses, according to the company's Form 10-Q filed Aug. 6.
5. Henry Schein said the restructuring plans are still being decided but that it expects incoming restructuring charges to primarily include severance pay and facility-related costs.
6. The company said it expects to record restructuring charges in the second half of this year and in 2025.
5. A spokesperson for Henry Schein declined to provide Crain's New York Business with more details about the layoffs, including when the layoffs would take place and how many people would be affected.
6. Henry Schein reported $3.1 billion in total net sales for the first quarter of 2024, a 1.1% increase compared to the second quarter of 2023.
7. Nearly $2 million of the company's total net sales were from dental merchandise and equipment.
8. The company expects between 4% and 6% in total sales growth for 2024 compared to 2023. This is lower than the company's previous guidance of 8-10% growth, which the company had attributed to the anticipation of a stronger economy and a faster recovery from the cybersecurity incident.
A spokesperson for Henry Schein referred to the company's press release for additional details when contacted by Becker's.