Eargo (NASDAQ:EAR) Board of Directors approved a cost reduction plan to optimise the cost structure and operating model to be implemented by the end of fiscal 2023. The plan is expected to impact 90–120 employees, or ~32–42% of the company’s workforce.
The company estimates that it will incur non-recurring charges of ~$5M-$7M in connection with the plan.
The Board also approved plans for Christian Gormsen, President, CEO, and member of the Board of Directors, to separate from the company and to step down from his positions as President, CEO, and director, in each case, effective June 30, 2023.
The Board appointed William Brownie as interim CEO to succeed Mr. Gormsen, effective June 30, 2023. Mr. Brownie, 56, will also retain his role as COO, in which capacity he has served at the company since April 2019.
Form 8-K filing.
