Avinger, the image-guided atherectomy developer, disclosed recently that it has reduced its workforce by 36 positions due to a corporate restructuring initiative. The company’s new strategic direction will transition from producing and marketing products aimed at treating peripheral artery disease (PAD) to creating innovative image-guided devices for navigating total arterial blockages.
The decisions concerning these organizational changes were sanctioned by Avinger’s board of directors in an effort to better manage and deploy company resources, according to a document filed with the Securities and Exchange Commission.
The job reductions primarily impact employees involved in sales and manufacturing roles connected to Avinger’s existing PAD offerings. The layoffs became effective on January 3. Consequently, Avinger will cease production of PAD products and predict a halt in revenue previously derived from such device sales.
Going forward, Avinger intends to channel its resources towards the research and development of devices geared towards crossing chronic total occlusions, focusing on coronary artery disease treatment.
Despite their efforts, Avinger acknowledges in the SEC filing that there are no assurances of success in developing these products or in their subsequent market commercialization.
The company maintains that this strategic pivot and the associated workforce reductions will not lead to significant alterations.