Abbott (NYSE:ABT) is reportedly laying off as many as 400 workers in Maine as a result of a drop in demand for its COVID-19 diagnostics.
WMTW-TV reported that about 300 Abbott employees will be laid off in Westbrook, Me., as confirmed by the town’s mayor. Additionally, the station reported that about 100 workers at the company’s Scarborough, Me., location will be laid off.
According to an AP report, Abbott announced in May 2020 that it would expand its workforce into Westbrook with approximately 1,200 workers at a facility producing COVID-19 test kits. The company added several jobs for such purposes due to heightened demand for its COVID-19 tests during the pandemic, including around 2,000 in Illinois last September.
“We’ve recently seen a significant, rapid decline in COVID-19 testing demand and anticipate this trend will continue,” Abbott wrote in a statement to WMTW-TV. “Because of this, we are reducing our workforce that produces rapid tests in Westbrook and Scarborough. These sites will continue to play an important role in manufacturing tests for COVID-19 and other infectious diseases around the world. We’re grateful for the contributions our workers in Maine made to our country during the pandemic.”
The company also told WMTW-TV that the employees affected by the layoffs will be offered severance packages and will be considered for other positions within the company.
Abbott did not immediately respond to a request for additional information or further comment. This story may be updated.