Nuvectra Corp. said it will lay off about 20% to 25% of its workforce during the third quarter.
Founded in 2008, the Plano, Texas-based company, which employs nearly 200 people, has failed to generate a profit since at least 2014, according to S&P Global Market Intelligence data. The decision follows an announcement from Nuvectra that it was exploring potential strategic alternatives for the business, including a sale or merger.
The lay off will cost the company around $600,000 in pretax severance and other expenses but result in net pretax operating expense savings of about $1.2 million this year and about $5.8 million annually in 2020 and beyond.
Nuvectra develops and commercializes neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets.
