Dexcom and Other Medical Tech Firms Announce Significant Layoffs Amid Shift in Focus
The layoffs are the continuation of the steady stream of job cuts that have occurred in the medical technology business over the previous 18 months. The largest medical technology businesses, such as Medtronic, Zimmer Biomet, Illumina, and Baxter, have all laid off a significant number of employees in just one year alone.
Osso VR, Agilent Technologies, and Dermtech are among the smaller companies that have submitted plans to lay off employees in 2024. Cue Health, on the other hand, has already eliminated hundreds of positions in preparation for its eventual closure.
As a result of the shift to our new focus over the next years, there will be a “reduction in our manufacturing workforce in San Diego,” according to McIntosh, who works for Dexcom. He stated that commercial manufacturing facilities in San Diego would transform to support product process development.
In response to a question about the amount of money that Dexcom anticipates saving as a result of the employment losses, McIntosh would not provide a remark. The corporation employed around 9,600 employees across the world as of the 31st of December, according to a filing with the federal government.
In the first quarter, Dexcom’s revenue increased by 24% year over year to $921 million, which will result in the company’s decision to lay off employees. In February, the diabetes technology company announced that it has achieved full-year revenue of $3.62 billion for the year 2023. This gain represents a year-over-year increase of 24%.
During the month of March, Dexcom was approved by the Food and Drug Administration to market the very first glucose monitor available without a prescription. Both Dexcom and Abbott, which were granted similar approval in June, are planning to introduce their respective products to the market in the United States this year. This may result in the firms gaining access to tens of millions of additional customers.
The 25th of July is the day that Dexcom will announce its financial results for the second quarter.
According to a report from California WARN, the corporation has already terminated the employment of 178 individuals in the year 2021.