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Radiation Therapy Company Accuray Unveils $25M Cost-Cutting Plan With 15% Workforce Reduction

MarketDash Editorial Team
6 hours ago
Accuray is restructuring its operations through workforce cuts, outsourcing, and organizational changes, targeting $25 million in annual profitability improvements while maintaining its full-year revenue guidance.

Accuray Incorporated (ARAY) is rolling out what it's calling a "broad strategic, operational and organizational transformation," which in corporate-speak translates to cost cuts, headcount reductions, and some serious organizational reshuffling. The radiation therapy solutions company says the changes will improve operating profitability by roughly $25 million once everything's in place.

Here's what's actually happening: Accuray is slashing its global workforce by about 15%, which is never pleasant but represents the bulk of where those savings are coming from. The company is also centralizing and globalizing core functions, streamlining its commercial structure, and pulling key leaders closer to the top by having global heads of service and product development report directly to the CEO.

Beyond the people side, Accuray is outsourcing selected non-core activities, evaluating its facilities footprint, and redirecting engineering resources toward higher-return projects and third-party solution integration. The goal is faster decision-making and stronger sales execution, which are reasonable objectives when you're trying to turn around profitability.

The financial math looks like this: Of the $25 million in expected annual savings, compensation and benefits cuts make up the majority. About $12 million should materialize in fiscal 2026, with nearly all initiatives fully implemented by the end of that fiscal year.

But transformations aren't free. Accuray expects to take restructuring charges totaling around $11 million spread across its fiscal second, third, and fourth quarters.

This announcement comes on the heels of a rough first quarter. The company posted a loss of 16 cents per share, significantly worse than the consensus estimate of a six-cent loss. Revenue of $93.94 million came in down 7% year over year, though it did beat expectations of $91.35 million.

Despite the weak quarter and the restructuring ahead, Accuray reaffirmed its full-year fiscal 2026 revenue guidance of $471 million to $485 million, compared to the consensus of $475.15 million. That's a signal that management believes the operational problems are fixable without sacrificing the top line.

Price Action: Accuray stock was down 1.90% at $1.03 at publication on Tuesday.

Back to News

Radiation Therapy Company Accuray Unveils $25M Cost-Cutting Plan With 15% Workforce Reduction

MarketDash Editorial Team
6 hours ago
Accuray is restructuring its operations through workforce cuts, outsourcing, and organizational changes, targeting $25 million in annual profitability improvements while maintaining its full-year revenue guidance.

Accuray Incorporated (ARAY) is rolling out what it's calling a "broad strategic, operational and organizational transformation," which in corporate-speak translates to cost cuts, headcount reductions, and some serious organizational reshuffling. The radiation therapy solutions company says the changes will improve operating profitability by roughly $25 million once everything's in place.

Here's what's actually happening: Accuray is slashing its global workforce by about 15%, which is never pleasant but represents the bulk of where those savings are coming from. The company is also centralizing and globalizing core functions, streamlining its commercial structure, and pulling key leaders closer to the top by having global heads of service and product development report directly to the CEO.

Beyond the people side, Accuray is outsourcing selected non-core activities, evaluating its facilities footprint, and redirecting engineering resources toward higher-return projects and third-party solution integration. The goal is faster decision-making and stronger sales execution, which are reasonable objectives when you're trying to turn around profitability.

The financial math looks like this: Of the $25 million in expected annual savings, compensation and benefits cuts make up the majority. About $12 million should materialize in fiscal 2026, with nearly all initiatives fully implemented by the end of that fiscal year.

But transformations aren't free. Accuray expects to take restructuring charges totaling around $11 million spread across its fiscal second, third, and fourth quarters.

This announcement comes on the heels of a rough first quarter. The company posted a loss of 16 cents per share, significantly worse than the consensus estimate of a six-cent loss. Revenue of $93.94 million came in down 7% year over year, though it did beat expectations of $91.35 million.

Despite the weak quarter and the restructuring ahead, Accuray reaffirmed its full-year fiscal 2026 revenue guidance of $471 million to $485 million, compared to the consensus of $475.15 million. That's a signal that management believes the operational problems are fixable without sacrificing the top line.

Price Action: Accuray stock was down 1.90% at $1.03 at publication on Tuesday.