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GeneMachines Lays Off 25 Percent of Workforce

SAN FRANCISCO, June 17 - GeneMachines has laid off approximately 20 employees, mostly from manufacturing, in an effort to offset a drop in sales and allay costs, a company official told GenomeWeb today.


The reductions, which brings to 60 the total number of remaining employees, were made last week and reflected a need "to align expense with revenue," said Terry Allread, GeneMachines' new chief operating officer.

"We're off our revenue projections this year due to a general slow-down in the capital equipment industry," said Allread. "I think it's the economy across the board right now. People are being very cautious" in making new purchases, he said.


Allread said sales of oligo synthesis equipment was hit hardest compared to other GeneMachines tool lines, which includes microarrays. He said many of the company's customer complained that grant cycles were taking longer, leading to increased waiting periods for funds to make equipment purchases.


He said GeneMachines, a privately held company based in San Carlos, Calif., has no plans for further staff reductions.

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