Wearable technology company Nuheara says it will temporarily stand down employees in non-essential roles, while its senior executives have accepted reduced remuneration.
Nuheara says escalating government restrictions to limit the spread of COVID-19, particularly in Malaysia where the company manufactures its flagship hearing device product, has led to implementing business stabilisation measures.
These include temporarily standing down employees in non-essential functions and reducing senior executive remuneration by 50 per cent, including for Nuheara chief executive Justin Miller.
Northbridge-based Nuheara said the measures, which also include cuts to advertising, will be reviewed at June 30.
Mr Miller said businesses worldwide had responded swiftly to the situation surrounding the coronavirus pandemic.
“We don’t take this decision lightly, but we are looking at maintaining longer-term business stability,” he said.
“We have developed a product that can change people’s lives for the better and have customers that have continued to trust us with new orders – even in difficult times.”
Nuheara’s IQbuds2 Max hearing device recently exceeded $1 million in pre-orders after launching in only January.
Ninety-three per cent of the orders were paid through Nuheara’s global direct to consumer (DTC) model.
Mr Miller said the DTC model was proving itself as a viable hearing alternative.
“I can assure our customers and employees that the measures we are taking are designed to preserve these strengths and ensure we are best placed to resume normal operations quickly when this crisis is over,” he said.
Nuheara says it will continue to monitor and respond to the changing COVID-19 situation.
Company shares were down 7.7 per cent to 1.2 cents per share at 2:30pm AEDT.
