Hologic (NYSE: HOLX) plans to close certain international facilities amid product discontinuations and restructuring within its diagnostics business.
The company outlined the changes — first reported by MedTech Dive — in its quarterly Form 10-Q filed with the SEC, dated Feb. 2, 2024.
Hologic reported accelerated depreciation of $7.2 million and a lease asset impairment charge totaling $12.5 million as a result of a change in strategy for an unspecified business within its diagnostics unit.
The Marlborough, Massachusetts–based women’s health and diagnostics company said it opened discussions with respective works councils. It also recorded the minimum statutory severance benefit for affected employee groups, totaling $1.8 million. Hologic expects total severance benefits related to this action to range between $4 million and $8 million.
The company expects to complete this action by the end of 2024. The SEC filing didn’t disclose how many employees the closures, discontinuations and restructuring could affect.
Notably, Hologic CFO Karleen Oberton recently gave an interview that included harsh words for executives enacting layoffs. The statements follow a slew of recent workforce reductions in the medtech industry and elsewhere.
In an interview with the Wall Street Journal, Oberton claimed Hologic’s leadership team operates under a“philosophy that mass layoffs are a failure of leadership.” The company, which saw inflated diagnostics sales during the COVID-19 pandemic, apparently had that view even before the pandemic. According to MedTech Dive’s report, a Hologic spokesperson said declining COVID-19-related revenue is not related to the closures.
Hologic didn’t immediately respond to a request for comment — this story may be updated.