The two companies are the latest to join the long list of medtech companies cutting employees amid a challenging time for the industry. To date, MassDevice has reported on more than 18,000 medtech employees who have been let go.
According to California WARN notices, Cala, a neuromodulation technology developer, laid off 107 employees.
The filing lists the type of reduction as a permanent layoff pertaining to Cala’s San Mateo, California location. California received the notice of the workforce reduction on May 17. According to the filing, the layoffs go into effect on June 30.
Cala develops transcutaneous afferent patterned stimulation (TAPS) therapy for treating tremor. The company delivers TAPS therapy with its Cala Trio device. Last month, Cala introduced its next-generation transcutaneous afferent patterned stimulation (TAPS) technology as well.
Layoffs hit Cue Health
Meanwhile, Cue Health’s layoffs cover about 30% of its workforce, totaling about 329 people, according to the legal filings. The diagnostic technology developer earlier this month hit a milestone when it submitted a molecular RSV test to the FDA.
All of the permanent layoffs impact multiple San Deigo locations belonging to Cue. The layoffs also affect the company’s Vista, California, location. The state of California received notification of the layoffs on May 17. They go into effect on June 27.
In a letter to employees, Ayub Khattak, Cue chair and CEO, attributed the decision to “a difficult macroeconomic environment.” Khattak also cited test menu expansion efforts and new product launches in the early phases of revenue generation.
According to Khattak, Cue sits in an “in-between” period, between the launch of its COVID-19 product and the rollout of its expanded menu.
“I am sorry to share that in order to preserve Cue’s opportunity to succeed, I have made the difficult decision to further reduce Cue’s workforce by approximately 30%,” Khattak wrote. “This reduction will impact many departments at Cue and all employees who are affected will be notified shortly following this email. I want to express my gratitude to every colleague who is leaving Cue and wish them success in their future endeavors. Their contributions to building the Cue platform have helped lay the foundation to deliver on our mission to empower people to live their healthiest lives.”
According to the San Diego Union-Tribune, it marks the third round of layoffs for Cue in the last year. The company laid off 170 manufacturing workers in June 2022, then cut its workforce by 388 more in January of this year.
