Conformis Inc. announced plans to improve its overall business model with a plan that includes prioritization of certain product development opportunities, cost reduction initiatives with the optimization of sales, marketing and administrative expenses, and a reduction of its workforce. In addition, Conformis announced the reduction of its debt facility from $30 million to $15 million.

By optimizing its overall operating expense structure, Conformis plans to leverage its improvements in gross margin, which the company believes will lead to a reduction in the use of cash by operating activities to less than $4 million per quarter in 2019 compared with approximately $10 million per quarter during 2018, according to the release. The release noted these expense reductions will impact sales and marketing, research and development, and general and administrative expenses. Conformis has also selectively identified opportunities to expand its distribution in certain international markets with the intention to help offset the sales weakness experienced in Germany.