SmileDirectClub Inc (NASDAQ:SDC) announced it is suspending operations in Mexico and seven other international markets to save $120 million in 2022.
- The at-home orthodontics provider would suspend operations in Mexico, Spain, Germany, the Netherlands, Austria, Hong Kong, Singapore, and New Zealand while continuing “to operate in and scale its presence in” the U.S., Canada, the U.K., Ireland, France, and Australia.
- Additionally, SmileDirectClub said it would cease any ongoing international expansion plans until “the global economy recovers from the pandemic and macroeconomic pressures that have contributed to challenging operating environments.”
- The move will result in “a reduction in workforce to right-size its operating structure,” though SmileDirectClub did not release exact numbers of layoffs.
- The goal of the move is “to better support growth initiatives and allocating capital to countries with the greatest potential for near-term profitability.”
- The reorganization will cost the company approximately $25 million, SmileDirectClub said, including lease buyouts and severance payments, among other expenses.
- SmileDirectClub affirmed its previously issued guidance FY21 revenue of $630 million - $650 million.
- Price Action: SDC shares are up 6.53% at $2.12 during the premarket session on the last check Tuesday.
