NEW YORK (GenomeWeb News) – Life Technologies has begun laying off workers less than one month after releasing second-quarter earnings that fell short of analyst estimates on both the top- and bottom-lines.
On deadline, a message left with the company was not returned. The San Diego Union-Tribune reported, however, that Life Tech began laying off workers on Thursday. In a statement the company told the paper, "In the face of a challenging economic environment and as part of the continued evolution of Life Technologies, the company is implementing a number of previously disclosed cost-savings efforts."
It declined to say how many jobs were being cut or where the cuts would be. Before the layoffs Life Tech had about 11,000 employees worldwide.
The workforce reduction comes about one month after the company reported earnings results, which company President and CEO Greg Lucier acknowledged "were lower than anticipated." He attributed the results to the lingering effects of the Japanese earthquake and tsunami in March that affected the launch of its newest next-generation sequencing platforms, and a temporary slowdown in its China business due to a change in its commercial strategy there.
"That said, we are taking concerted actions to address these challenges and are expecting growth to increase in the second half of the year," Lucier said last month. "We fully understand the issues, have detailed actions underway to address them, and remain confident in our strategic and financial position, as well as the direction of the company."
During a conference call, he added that Life Tech would be accelerating cost-saving measures that had been planned for later in the year, but didn't elaborate. CFO David Hoffmeister said that savings from the measures would be in the range of $10 million to $20 million for the second half of the year.