A healthcare service company now announces unexpected layoffs, a response due to a sudden drop in demand, sources confirm.
Siemens Healthineers said last week that it plans to close its fast track diagnostics unit in response to a significant drop in demand, becoming the latest medtech company to make cuts this year.
The unit provides polymerase chain reaction (PCR) testing products, mainly in Europe.
Demand for the products peaked during the COVID-19 pandemic but has fallen away since then, reports MedTech Dive.
Closing the unit will affect around 90 employees, most of whom work in Luxembourg.
Siemens, which has laid off U.S. diagnostics staff as part of a wider restructuring, is aiming to complete the closure in September.
Siemens discusses “syndromically grouped real-time PCR multiplex kits” on the fast track diagnostic page of its website.
The kits serve an important clinical need, Siemens said, because they allow physicians to “order a test from the lab covering probable pathogenic causes — virus, bacteria, fungi or parasite — at the same time, in one run.”
Siemens sees the tests as a way to quickly reach a diagnosis and save money.
However, the unit is a “minor player in the molecular diagnostics space,” the company said in its notice about the closure, and provides a “very small part of the overall revenue” of Siemens’ diagnostics segment.
Those factors informed Siemens’ decision to close the unit.
Siemens reached the decision after carrying out a strategic review of portfolio contributions and market opportunities.
The review follows a wider restructuring of the diagnostics business.
Siemens laid off 300 people in New Jersey last year as part of changes intended to achieve 300 million euros in “cost out measures” by 2025.
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Other Economy News Today
A massive company is now laying off 400 salaried workers due to ‘unprecedented uncertainties’, as it seeks to cut costs.
Chrysler parent Stellantis is laying off roughly 400 U.S. salaried employees in its engineering, technology and software organizations to cut costs, reports CNBC.
The automaker on Friday said the layoffs would affect about 2% of employees in those units “after rigorous organizational reviews.”
The layoffs occurred during a “mandatory remote work day” for U.S. salaried, nonunion employees in its engineering and technology organization.
Stellantis employed 11,800 U.S. salaried employees as of the end of last year.
The cuts are effective March 31.
“As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure,” the company said in an emailed statement.
A spokeswoman for the automaker declined to discuss the exact number of employees who are being laid off.
A source familiar with the actions confirmed it at about 400 workers, a number first reported Friday by The Wall Street Journal.
The action is the latest by Stellantis CEO Carlos Tavares to cut costs through layoffs, buyouts and other methods since the company was established through a merger of Fiat Chrysler and French automaker PSA Groupe in 2021.
The cuts are part of a push to achieve Stellantis’ “Dare Forward 2030” strategic plan that aims to increase profits and double the automaker’s revenue to 300 billion euros, or $335 billion, by then, among other targets.
“While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive and our Dare Forward 2030 strategic plan,” the company said.
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Also Read: A Grocery Brand Is Now Led Into An Unexpected Bankruptcy
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