USA — Illumina has disclosed in a filing with the US Securities and Exchange Commission that it is reducing its global workforce of over 9100 employees by around 5%, in order to realign operating expenses to reflect the current macro-economic environment.
As a result, Illumina expects to book a restructuring charge in the fourth quarter that also includes expenses related to optimizing its facilities.
The company, which is in the process of launching its next-generation NovaSeq X series DNA sequencing systems, said it will stay focused on “its innovation roadmap and sustainable long-term growth.”
Illumina is one of several technology companies that have been laying off workers as a result of economic turmoil caused by inflation, global conflicts, and fluctuating currency exchange rates.
Facebook, Twitter, and Amazon are among the large corporations that have reportedly laid off thousands of employees.
Meanwhile, EU regulators are still scrutinizing Illumina’s controversial Grail buyout, and until the European Commission approves the merger, Grail continues to be held as a separate company.
The European Commission officially moved to block the deal in September, bringing the long-running saga to a close.
Though Illumina stated at the time that it intended to appeal the decision, the company also stated that it would begin exploring divestment options for the future of Grail and its Galleri multicancer early detection blood test.
Earlier this month, Illumina posted a higher loss in the third quarter due to a nearly US$4-billion goodwill impairment related to the Grail business.
The US$3.91 billion impairment charge was announced alongside the company’s third-quarter earnings report on Nov. 3 — which, despite a 1% increase in sales to US$1.12 billion, also saw Illumina lower its revenue forecasts for the rest of 2022.
In lowering the sales forecast, the company noted that growth in sequencing consumables would be largely offset by a fourth-quarter decline “in select research project sample volume,” as well as delayed purchases ahead of the availability of NovaSeq X.
In a separate development, Illumina has launched its new, state-of-the-art Solutions Center in Dubai, United Arab Emirates with the aim of boosting genomics innovation in the country.
The Illumina Solutions Center in Dubai expands the company’s investment and support in the UAE, with potential to significantly grow the application of genomics in human health.
Building genomics expertise will support healthcare providers and others as they develop capabilities to deliver genomic precision medicine to patients at scale.
Illumina’s decision to bring the facility to the UAE is based on the country’s vision to strengthen its world-class healthcare system by investing in genomics research.
It is also a result of Illumina’s commitment to shape the future of healthcare in the UAE and create a productive partnership with the country.
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