California Company Now Announces An Unexpected Round of Layoffs

A California company now announces an unexpected round of layoffs due to declining COVID-19 test sales, a trend since 2022.

Cue Health plans to cut a total of 230 employees, or nearly half of its staff, as it looks to reduce costs amid declining COVID-19 test sales, reports MedTech Dive.

The San Diego-based company grew quickly during the pandemic when it brought in government and private contracts for its point-of-care molecular tests.

Now, Cue faces questions about its ability to continue as losses add up and revenue declines.

The changes are intended to refocus Cue’s business on its Cue Health Monitoring System, including developing and deploying point-of-care tests, spokesperson Rachel Rudo wrote in an email.

“In alignment with this strategy, Cue has significantly reduced, or removed altogether, functions that don’t directly support this strategy,” Rudo said.

Cue has gone through several rounds of layoffs as the testing company looks to control costs.

In January, the company cut more than 200 positions across two rounds of layoffs, and Cue also slashed hundreds of roles in 2022 and 2023.

The main challenge the company faces is declining sales of COVID tests, which account for the majority of Cue’s sales.

“Our revenue for at least the near term will almost exclusively depend on sales of our COVID-19 test until we can obtain regulatory clearance or other appropriate authorization for, and commercialize, additional tests,” Cue wrote in the annual filing.

In 2023, Cue brought in $70.9 million in revenue, an 85% decrease year over year.

Meanwhile, the company reported a net loss of $373.5 million.

Cue said in its annual report that it may seek additional financing and evaluate financing alternatives to meet its cash requirements for the next year.

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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing

Other Economy News Today

Market News Today - California Company Now Announces An Unexpected Round of Layoffs.
Market News Today – California Company Now Announces An Unexpected Round of Layoffs.

A popular Italian restaurant now announces an unexpected closure after nine years in business, according to an email sent to customers.

Italian Eatery, located in south Minneapolis, Minnesota, told its long-time customers that it planned to shut its doors.

The beloved restaurant, also known as ie, also plans to close its sister restaurant un dito, known for its Sicilian seaside street food, per The US Sun.

They have not announced a closing date but are expected to close between late May and mid-June, according to Bring Me The News.

“As we prepare to close our doors at ie and un dito, we’d like to extend a heartfelt invitation for you to join us for our final months of service,” an email to customers from Carrara $ Co. read.

“Gather with us at the table and let us reminisce over the incredible memories we’ve created together and cherish the moments shared over the past nine years.”

Italian Eatery has been a popular spot since its opening in 2016 and is known for its full-service drinks and dining near Lake Nokomis.

Un dito is a 400-square-foot space that specializes in sips and snacks or afternoon gatherings like you would see in Italy, according to its website.

The restaurant’s “Last Supper” reservations will be released every week and shared in weekly newsletters, according to its website.

“As always, we will continue to reserve walk-in tables at both ie + un dito for our beloved neighborhood,” the announcement read, according to the outlet.

Carrara & Co. also owns due, a focacceria and Italian market in St. Paul, Minnesota that the company calls “Italian Eatery’s spawn, aka quirky little brother,” according to its website.

Despite the Minneapolis closures, due will remain open.

“I’m pleased to inform you that all other Carrara & Co operations remain unaffected, including Due Focacceria, and we are even expanding our services,” according to a statement, reported by NBC affiliate KARE.

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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy

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Market News Today - California Company Now Announces An Unexpected Round of Layoffs.
Market News Today – California Company Now Announces An Unexpected Round of Layoffs.

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