Siemens Healthineers Diagnostics filed with the state of New Jersey to confirm the planned layoffs of 300 employees at its Morris, New Jersey location.
The latest round of layoffs for the company follows the elimination of 67 roles at a diagnostics facility in Flanders, New Jersey, in June. A number of companies around medtech enacted layoffs over the past year and more. We compiled a list of them here.
Siemens Healthineers’ filing with New Jersey’s Department of Labor & Workforce Development is dated this month. The 300 layoffs go into effect over the course of the next 14 months or so. Effective dates range back to March of this year and run through Dec. 31, 2024.
With the Flanders layoffs earlier this year, Siemens Healthineers confirmed that its last layoffs came as part of a consolidation effort. It moved its Atellica Solution IM (immunoassay) module manufacturing from the New Jersey site to its Swords site in Dublin, Ireland. Those employees held eligibility for severance and outplacement benefits under company policy. The same goes for employees impacted by the Morris layoffs, according to a company spokesperson. They can also apply for other positions within the organization and broader group of Siemens companies.
Siemens Healthineers previously reported struggles within its Diagnostics business, which saw 39% revenue declines in the second quarter of this year. The company reported a 20.1% year-over-year drop in the third quarter. It attributed the declines in its Diagnostics business to dwindling COVID-19 test demand.
On the company’s second-quarter earnings call, CEO Bernhard Montag talked about simplifying the Diagnostics business. Business shifts include moving on from legacy platforms in favor of the Atellica options. Previously, the company suggested plans to halve the number of diagnostic platforms offered.
Statement from Siemens Healthineers
A Siemens Healthineers spokesperson shared a statement confirming several measures put in place by the company at the end of 2022. Due to external headwinds, including COVID-19, inflation, supply issues and labor shortages, the company looked to “compensate for the adverse impacts” on its performance.
“These measures reduce the complexity of our portfolio, create a leaner organization, and streamline our supply chain and company footprint,” the statement reads.
Siemens Healthineers’ latest layoffs come as part of the consolidation of the Flanders location (Flanders is in Morris County). Its latest WARN notice pertained to all of its Atellica production, as opposed to the one in June that affected the Atellica IM module.
Consolidating to Dublin “allows for greater operational efficiency and cost savings,” the statement said. The decision mostly affects manufacturing positions. The 300 roles is inclusive of all reported job eliminations for 2023, according to the spokesperson — 300 employees were notified that their roles would be eliminated but the actual employment date is not limited to 2023.
“This decision to consolidate some manufacturing operations in Flanders does not impact other operations of the Diagnostics business area of Siemens Healthineers or of Siemens Healthineers / Siemens businesses in New Jersey,’ the spokesperson said.