By Katherine Hamilton
Zynex is cutting 15% of its workforce after health insurance company Tricare temporarily suspended payments.
The medical device maker said Tuesday it plans to cut jobs because Tricare has suspended payments while it reviews prior claims, and it is unclear when that will be resolved.
Tricare represents about 20% to 25% of Zynex's annual revenue. Zynex plans to meet with Tricare in April and said it believes it has good evidence to get payments reinstated.
Fourth-quarter revenue was lower than expected due to Tricare's suspension, falling to $46 million, from $47.3 million in the prior-year period.
The job cuts are expected to primarily affect corporate employees, Zynex said. The cuts, along with other cost reductions, are set to save about $35 million annually.
Zynex reduced its headcount previously, which cut sales and marketing expenses in the fourth quarter, it said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
March 11, 2025 16:53 ET (20:53 GMT)
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