Dentsply to shutter York facility, lay off 200 employees
Dentsply Sirona will lay off about 200 employees in York City and shutter one of its local facilities after sales plunged more than 50% in the second quarter, company officials announced Thursday.
This comes six months after the company announced it would move its headquarters from York to Charlotte, North Carolina.
The dental supply company intends to lay off 200 employees at the 570 W. College Ave. location in early 2021, the company said on a quarterly earnings call with investors.
About 270 employees will transition to other properties in York County or in the company’s distribution supply center in Lancaster County, depending on their job functions.
“These decisions are never easy, but they are necessary to allow us to reinvest to meet our customers’ evolving needs and drive long-term, sustainable growth,” said Tom Leonardi, group vice president of the consumables product group at Dentsply Sirona, in a news release.
The news came after sales dropped 51.4% in the second quarter compared with the same period in 2019.
Company officials blamed the COVID-19 pandemic for the drop in sales.
Dentsply's stock prices on Nasdaq reached a 52-week high in late January, topping off at $60.87 per share. They nearly halved in March as the pandemic shuttered much of the country. As of 2:30 p.m. Wednesday, Dentsply's stock were trading at $43.30, a 7.58% drop from the previous day's close.
The decision to lay off employees and close facilities was made in an effort to be more competitive with digital markets, reflecting a shift in demand toward digital sales and away from analog laboratory products, officials said.
The company will be providing support to employees directly affected by the change, and the building will be maintained until decisions are made on its disposition, officials said.
While one property is closing, however, Dentsply Sirona plans to invest more than $1 million to expand office space in York for its other facilities, a news release stated.
“York has been an important location for Dentsply Sirona for many decades, and this will continue as the company plans to make significant investments in both production capacity and research and development capability," Leonardi said.