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The Tennessee Conservative Staff –
UK-based company Smith & Nephew is laying off 150 employees after receiving a hefty amount of taxpayer money to create new jobs in the area.
The medical technology company, which makes knee and hip implants as well as wound care systems, employs around 2,330 people in its orthopedics division based in Memphis.
In 2016, the company was given a FastTrack grant in the amount of $710,000, earmarked for “expansion” with the promise of 142 new jobs. These grants, awarded by the Tennessee Department of Economic and Community Development, are funded with taxpayer dollars.
Smith & Nephew closed 4 smaller facilities outside of the United States in 2022. Since then, they have consistently underperformed, driving their three top investors to call for a spinoff of the orthopedics side of the business.
The company released a statement to the Memphis Business Journal, announcing the layoffs:
“Smith & Nephew is working to transform to a more efficient, effective, and agile business. As we make improvements to our business efficiency in Memphis, we have identified some activities that are no longer required to be delivered as they are today. Unfortunately, this has meant that we are making around 150 roles redundant and most will transition by year end. The impacted colleagues are being treated with dignity and respect, in line with our values.”
The company’s commercial office on Goodlett Farms Parkway is now up for sale as the company plans to look for a smaller office within the city.
3 Responses
Respect, Dignity and Fired. Yeah Right.
How many times do we have to see some BIG or large corporation bet tax breaks AND money from the state government only to delay, cause more problems or just fail or close up shop?
Ford is delayed and EVs are not as popular. They delayed to 2027. What happens if they delay more?
How many small businesses could benefit from these billions instead of one company? Go ahead, give them tax breaks but stop giving those big corporations billions and redirect them to TN small businesses and startups. You never seem to see some politician talking about how they funded a bunch of small businesses or startups. Just the big guys.
Don’t get me started on the Titans and the waste of 500 million. The payback on TN’s money is projected over 20 years and only gets paid by the following. The state of Tennessee is committing $500 million through revenue bonds, which will be repaid via a 1% Davidson County hotel occupancy tax, in-stadium sales tax, 50% of sales tax from future development of the stadium’s campus, and ticket taxes and fees.
How about a guarantee price for TN citizens so that they don’t have to pay as much as out of towners and other franchise fans? Where is the voice of the people for wastes of our tax dollars.
Yup, another bad investment of tax dollars.