NEW YORK (GenomeWeb News) — Gene Logic said today that it will lay off approximately 80 employees in its genomics division by Oct. 5 as it restructures the unit.
The company announced the restructuring in June when it said the genomics division revenues would be "significantly lower" than anticipated for both the second quarter and the full year of 2006. Gene Logic withdrew its financial guidance for 2006 and 2007 as a result.
Today, Gene Logic said the staff reductions will cut its annual salary and fringe benefits costs by approximately $8 million. The company said it also expects “additional savings in certain non-employee costs. ..."
Following the lay-offs, retained employees will “support existing products and services and ensure ongoing service levels are effectively maintained for current and prospective customers," Gene Logic said.
The company added that “affected employees will be given severance and outplacement assistance costing approximately $1.5 million.”
The lay-offs will not affect Gene Logic's preclinical and drug-repositioning divisions, the company said.
The company is scheduled to report its second-quarter results on Friday.