NEW YORK – LumiraDx on Thursday announced that it is implementing a strategic refocus and cost restructuring program that will result in the layoffs of 40 percent of its global workforce.
The program's goal is to reduce LumiraDx's scale and operations to pre-pandemic levels, enabling the company to focus its resources on key strategic priorities, including commercialization of its existing product portfolio, expanding product offerings in the US through regulatory submissions, and prioritizing the development and launch of its troponin and strep A tests, the London-based firm said in a statement.
The layoffs will include full-time, part-time, and contractor positions to adjust to reduced COVID-19-related production volumes and streamline operations in commercial and research and development activities. The restructuring program is expected to lead to approximately $36 million in yearly savings, with the majority of savings occurring in the next four months, it said.
"As we emerge from the pandemic, we are taking decisive actions to strengthen our business and position ourselves for long-term success," LumiraDx Founder and CEO Ron Zwanziger said in a statement. "While we regret the impact this decision will have on our affected employees, we are confident that these measures are necessary to align our resources with our strategic priorities, reduce costs, and improve efficiencies."
The announcement comes amid a recalibration by many diagnostics firms as COVID-related revenues decline.
Last month, LumiraDx reported that its Q4 2022 revenues fell 65 percent compared to Q4 2021 and full-year 2022 revenues declined 40 percent year over year. In February, the firm received notice from the Nasdaq that its shares were out of compliance with the stock exchange's minimum $1 bid price requirement.