NEW YORK, April 29 - Third Wave Technologies' manufacturing divisions will be hardest hit as the company starts cutting 25 percent of its workforce in a broader effort to cut costs.
Third Wave, which announced the staff reductions last week, had a headcount of roughly 300 people at the end of 2001. A spokesman said that while the lay offs were "across the board," they do not forecast a departure from genomics research and that all of its product development activities will continue.
Rather, the company "is currently exploring several probe-supply alternatives, such as spinning off, outsourcing and/or otherwise divesting portions of its lower-margin probe manufacturing operations .... " Third Wave said last week of its Wisconsin-based DNA oligonucleotide probe-production facilities.
The firm also said it plans to hire more sales and marketing staff to get its products in the marketplace.
"We believe that, ultimately, providing our research customers with greater access to our enzymes at the same time that we're exploring alternatives for supplying them with probes will increase adoption, and with it increase revenue," the spokesman, Rod Hise, said.
Third Wave, based in Madison, said it expects to post more than $10 million in revenue for the first quarter of 2002. The company earned $11 million during the same period one year ago.
A conference call is scheduled for May 7 at 10:00 a.m. Eastern time.