A massive company is now laying off 500 employees in California after a year where the industry has seen numerous job cuts.
Dexcom will lay off a total of 535 employees in California, adding to the medical device industry’s long list of job cuts this year.
The expected first date of separation is July 26, and the layoffs are connected to one site in San Diego, according to a Worker Adjustment and Retraining Notification filing with California.
“Dexcom has decided to centralize its [U.S.] manufacturing operations in Mesa, Arizona, and refocus our San Diego operations as a Global Center of Excellence for Product Innovation,” company spokesperson James McIntosh wrote in an emailed statement.
He added that Dexcom is offering support for employees, such as allowing them to apply for similar roles at another U.S. site with relocation assistance.
The layoffs continue the consistent stream of job cuts in the medtech industry over the past 18 months.
This year alone has seen numerous layoffs from top medical technology companies, including Medtronic, Zimmer Biomet, Illumina and Baxter.
Smaller companies like Osso VR, Agilent Technologies and Dermtech have filed layoff plans in 2024 as well, and Cue Health cut hundreds of jobs on its way to shutting down the company.
Dexcom’s McIntosh said that commercial manufacturing facilities in San Diego will be transformed to support product process development, writing that there will be a “reduction in our manufacturing workforce in San Diego, as we transition to our new focus over the coming years.”
McIntosh did not comment on a question as to how much money Dexcom expects to save from the job cuts.
The company had approximately 9,600 global employees as of Dec. 31, according to a federal filing.
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Other Economy News Today
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
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