NEW YORK (GenomeWeb News) – Affymetrix will shutter its instrument manufacturing and development facility in Bedford, Mass., this winter as part of a broader plan to cut costs, according to a filing with Securities and Exchange Commission yesterday.
The move, which Affy “committed to” on Sept. 7, will consolidate the facility's instrument manufacturing operations with the company's probe array-manufacturing space in West Sacramento, Calif.
Bedford’s instrumentation development capabilities, meantime, will be consolidated with Affy’s principal R&D facilities in Santa Clara, Calif.
The restructuring is expected to “eliminate or transfer” around 80 jobs beginning in the fourth quarter and continuing into the first half of 2007, Affy said in the filing.
Affy said it expects the Bedford facility “closure” to be “materially completed” by the third quarter next year.
“These actions were approved as part of the company's previously announced efforts to reduce expenses in the general and administrative functions including the rationalization of the company's facilities,” Affy said in the SEC filing.
During Affy’s second-quarter conference call in July, CEO Stephen Fodor said Affy will restructure its “corporate, general, and administrative expenses” after calling 2006 the “single most challenging year” in Affy’s 13-year history, “compounded by increased competition, especially in the genotyping market.”
At the annual Bear Stearns investor conference this week, Affy CFO Greg Schiffman said: “As we have evaluated our facilities on a global basis, we made the decision … to close our Bedford manufacturing facility. It will bring us leverage in R&D, SG&A, and manufacturing."
In yesterday’s SEC filing, Affy said it “expects to incur costs” related to the restructuring but was unable to offer details at the time of the filing. The company said it is “currently preparing its analysis of the restructuring costs and expects to complete its analysis before the end of the current fiscal quarter.”