Carl Zeiss Meditec implements cost-cutting measures amid declining revenue

Carl Zeiss Meditec is facing financial and operational challenges, characterized by weak recent business development and increased short-selling activity. The company reported a 2.9% decrease in revenue for the first nine months of the year, totaling €1.55 billion. Adjusted EBITDA fell from €177 million to €124.5 million, and earnings per share dropped from €1.02 to €0.80.

To improve profitability and resilience, the company has launched the ‘ProfitUp’ efficiency program. This initiative aims to reduce annual costs by more than €200 million and includes the reduction of 600 to 700 jobs, which will impact locations such as Jena.

In the stock market, several prominent investment firms have increased their net short positions against the company. Citadel Advisors LLC raised its position to 0.61%, while Millennium International Management LP holds a 0.73% position, and AQR Capital Management, LLC holds 0.59%. Together, these three firms represent a combined short position of 1.93% of outstanding shares.