NEW YORK – Agilent Technologies said this week in its Form 10-K filed with the US Securities and Exchange Commission that it has begun implementing plans to cut about 400 employee positions and close an undisclosed number of excess facilities by the end of fiscal year 2024.
The firm also disclosed in its 10-K report that it sold its Resolution Bioscience business to Exact Sciences for $50 million during the quarter ended Oct. 31.
In the report published Wednesday on Agilent's website, the company said the $46 million restructuring plan, initiated in the fall, will reduce its global workforce by 2 percent and will reduce its annual sales and operating expenses by $80 million across its three business segments, the Diagnostics and Genomics Group, Life Sciences and Applied Markets Group, and CrossLab Group. The Santa Clara, California-based firm said it anticipates completion of the restructuring during its fiscal year 2024 ending Oct. 31.
Separately, the California Employment Development Department reported that Agilent has given notice so far of 105 layoffs at facilities in Santa Clara, La Jolla, and San Diego, effective Dec. 1, 2023, through Jan. 26, 2024. An Agilent spokesperson said in a statement that those limited workforce reductions were carried out to align some of the company's businesses with the market environment, business priorities, and strategic opportunities.
Agilent also said in the 10-K report that it reached a deal during fiscal Q4 2023 to divest its Resolution Bio business for $50 million. The firm announced in September that it had reached an agreement to sell the business to Exact Sciences, but the firms did not disclose at the time the financial terms of the deal.
Agilent had said in August that it was shutting down that business, which it acquired in 2021 for $695 million, due to what it deemed a disappointing market for kitted next-generation sequencing-based companion diagnostics. The firm recorded a charge of $270 million during the quarter, according to the 10-K report.
The firm separately announced Wednesday reorganization plans that will bring its Cell Analysis Division into the Diagnostics and Genomics Group (DGG). The Agilent spokesperson said no layoffs are connected or planned with that move, and the layoffs reported by California authorities was related to separate actions carried out earlier in the year.
Agilent CEO Mike Mullen said in the announcement that the realignment of the Cell Analysis Division will help accelerate the company's growth.
"We believe having the cell analysis team as part of DGG is a natural fit given the markets they serve and the clear linkages to our genomics and diagnostics customers," he said. "This is an exciting opportunity to bring our unique collection of cell- and molecular-based solutions together in ways that better align with how our customers are working."