Yes......announced closure of Warsaw distribution center,printing group and another round of consolidation in Finance group. Plus the low 5% will be let go per new GE management style guidelines the HR group has set up per all the new GE executives brought with them from GE the CEO has hired.
What will be done with that giant distribution center building in Warsaw? Will the distribution function be outsourced to Fed-Ex or is Zimmer renting/buying in Memphis? I am glad I don't work for the big Z.
The current Zimmer management only knows how to do the easy stuff. Keeping all of the current employees by growing the business the Elliot way is beyond their expertise and capabilities. They deserve what they will get glad I retired from what used to be Zimmer.
It's interesting that you say that Behold_Mr._G, I just saw on the local news from South Bend last night, that a company that pulled up stakes after being granted Property Tax Relief by the city for creating new jobs, lost a court case and is required to pay back all of the tax relief they were granted for hiring so many workers over, I wanna say, a 10 year period. It will cost them about$200k/year for 10 years they must pay the city back.
It's not unlikely that these other facilities that are offshore creations for the big blue Z may end up requiring the same thing. Great thought Behold!!!
I have never seen anything even remotely negative toward Zimmer as there was in the Warsaw newspaper today. There was an article on the front page of the paper regarding the leasing of the hangar at the airport in Warsaw that gave you an idea of how things are going. Nothing too negative but I have never seen anything like this reported publicly about Zimmer before. This kind of language from the city council tells me how things are going between the city and Zimmer. I don't think anyone at Zimmer cares about Warsaw. Infact, most of the management would like to see the whole place moved somewhere else.
Zimmer management is the joke of the industry. At least the CEO of Stryker had some fun while he was mismanaging his company. Zimmer's CEO is now the Chairman of AdvaMed. That is what he should do fulltime and get out of Zimmer.
Wow - Dvorak is the chair of Advamed now? Back when Elliot was CEO, wasn't Dvorak the general counsel (over Legal)? If so, wouldn't the Legal group be the corporate function ultimately responsible for reviewing/approving all of those agreements for Zimmer's consulting orthopaedic surgeons - the ones that got the company in hot water with the Justice Department and cost the company hundreds of millions of dollars? Maybe I am missing something here - if someone can enlighten me, that would be great.
Not sure if you watched a local South Bend TV Newscast the other night(WNDU), or not. It featured one of their reporters speaking with Brad Bishop of OrthoWorx(believe that is correct), who formerly was in Corporate Relations with Z speaking about how the town of Warsaw can improve itself to attract and retain key personnel; especially from the East and West Coasts and other larger communities to attract them to Warsaw. It was stated that over 6,000 people are employed by the three main Ortho Companies(Zimmer, Depuy, and Biomet), also it was stated that a fair number of supportive cottage industries have sprung up in the area as well.
I know the city is really PO'd about the relo of the logistics group to Memphis to speed up and lower transpo costs. Except for Dane Miller formerly with Biomet(and still one of its biggest shareholders), there is no rationale for either Z or Depuy to remain here, and we may see other small relo's of various groups take place in the next couple of years. Traditional Ortho may undergo a real transformation as the number of traditional procedures(Hips/Knees etc) continues to fall and more minimal invasive surgical techniques take place with more innovative companies moving into this space like Mako is starting to do. JMO and time will tell.