Ekso cutting worforce by 25%. They are getting desperate.
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), a robotic exoskeleton company, today announced plans to streamline its operations and reduce its workforce by approximately 25% to lower operating expenses and reduce cash burn. The program intensifies Ekso’s focus on driving commercialization of its proprietary Ekso GT for rehabilitation and its exoskeleton offerings for industrial applications.
Ekso Bionics will focus on advancing placements of its Ekso GT so that patients with stroke and spinal cord injuries can achieve better clinical outcomes and improved quality of life. In industrial markets, the Company will work with partners to increase awareness and utilization of Ekso Bionics’ exoskeleton solutions for industrial workers. The Company’s R&D efforts will continue to move forward with programs to advance Ekso’s proprietary solutions.
"We acknowledge the hard work of those affected by this decision, all of whom have been instrumental in bringing our life-changing technologies to market," said Thomas Looby, President and Chief Executive Officer of Ekso Bionics. “We remain on track with our strategic priority of establishing our unique products as industry standard. We believe that the measures announced today will enhance shareholder value as we more efficiently deploy cash and solidify our leadership in the emerging exoskeleton industry."
The Company estimates these cutbacks will result in a 25% reduction in monthly operating expense. One-time cash severance and related expenses are estimated at $1.0 million.
