Nanox Board Approves Workforce Cuts and 25%–30% Operating-Expense Reduction Plan

Nano-X Imaging’s board has approved a global workforce reduction and other cost-cutting measures, the Petach Tikva-based company announced on November 9. Together with initiatives already implemented, the plan targets a 25%–30% reduction in annualized GAAP and non-GAAP operating expenses compared with annualized 2026 expenses, excluding one-time restructuring charges. Nanox expects full implementation by the end of the first quarter of 2027. “Our objective is to translate Nanox’s technological and clinical progress into measurable commercial performance while strengthening our financial foundation,” said Erez Meltzer, chief executive officer and acting chairman. The company’s priorities include commercializing its Nanox.ARC imaging system and Nanox Imaging Network through U.S. channel partners, installations, clinical use and activation of contracted sites. It also plans to strengthen commercial partnerships and explore opportunities for Nanox.AI, original equipment manufacturing, teleradiology and healthcare IT. The savings target includes approximately $2 million in annual savings previously announced for restructuring South Korea operations. Nanox expects lower ongoing cash burn after implementation, although restructuring payments may increase near-term cash outflows. It is also evaluating manufacturing and supply-chain arrangements, infrastructure spending and alternatives for South Korea operations and other assets, potentially including divestitures, reduced activity or discontinuation. The Nasdaq-listed company said recurring operating losses and negative operating cash flows create substantial doubt about its ability to continue as a going concern. It expects to need additional financing and warned that funding may be unavailable or offered on unacceptable terms. Nanox is evaluating financing and strategic alternatives and measures to regain compliance with Nasdaq’s minimum bid-price requirement, without assurance that it will regain compliance.