NEW YORK – In documents filed with the US Securities and Exchange Commission on Wednesday, Cue Health said that it is implementing a new cost-reduction plan that will result in layoffs of 230 employees, or 49 percent of its workforce.
The firm implemented the new cost-reduction plan after a review of its business and operating expenses, Cue said in the filing. The plan is intended to reduce Cue's cost structure and improve its operational efficiency.
Cue has implemented several other cost reduction plans, including in January 2023, April 2023, and January 2024 that resulted in layoffs of more than 800 people in total.
In March, Cue CEO, Chairman, and President Ayub Khattak stepped down from the company as it began a comprehensive review of its business and operations. Last year, the firm's shareholders expressed concerns about the strategic direction of the company and its business plan, leading to the appointment of a new board member in February.
Cue has also faced difficulties with the US Food and Drug Administration: The agency denied its request for de novo authorization of its respiratory syncytial virus molecular test for over-the-counter use last month and declined to grant Emergency Use Authorization for its combination COVID-19 and influenza test in January.