Surgalign (NASDAQ:SRGA) stock is taking a beating on Tuesday after the spine solutions company filed for Chapter 11 bankruptcy.
As a result of this filing and plans to cut costs, several changes are coming to Surgalign. That includes the company announcing a 25% reduction in its workforce. These job cuts went into effect on June 16.
According to Surgalign’s filing with the Securities and Exchange Commission (SEC), it expects to suffer a one-time charge of $242,000 in the second quarter of 2023 in connection to the layoffs. However, the company expects this will reduce expenses by $3.5 million over the next 12 months.
SRGA Sees Leadership Changes Too
In addition to all of this, Surgalign has also announced the departure of some of its executives. That includes Chief Commercial Officer William Durall. However, Durall will keep working for the company as a consultant over the next four months.
Finally, Surgalign has approved retention pay for CEO Terry Rich and Chief Financial Officer Dave Lyle. This has them receiving cash retention bonuses of $550,000 for Rich and $350,000 for Lyle. There’s also an option for these two executives to secure additional cash retention bonuses.
SRGA stock is seeing heavy trading today with the bankruptcy news. This has some 159,000 shares changing hands as of this writing. For comparison, the company’s daily average trading volume is about 85,000 shares.
SRGA stock is down 55% as of Tuesday morning.
Investors seeking more of the most recent stock market news today will want to stick around!
We have all of the latest stock market news traders need to know about on Tuesday! A few examples include what’s going on with shares of Evelo Biosciences (NASDAQ:EVLO) and EBET (NASDAQ:EBET) stock, as well as the biggest pre-market stock movers this morning. All of that is ready to go at the links below!
More Tuesday Stock Market News
- Why Is Evelo Biosciences (EVLO) Stock Up 51% Today?
- Why Is EBET (EBET) Stock Up 71% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
