Layoffs Archives - Medical Design Sourcing

Hologic CFO: ‘Mass layoffs are a failure of leadership’

Hologic CFO Karleen Oberton [Photo courtesy of Hologic]Hologic (NYSE: HOLX) + CFO Karleen Oberton had some tough words for ax-dropping executives following recent layoffs in the medtech industry and beyond.

In an interview with the Wall Street Journal, Oberton and Hologic CEO Steve MacMillan — who together rode a wave of “COVID cash” from the company’s diagnostics business during the pandemic — discussed how they kept employment steady even as test sales slowed.

The Hologic’s leadership team formed its “philosophy that mass layoffs are a failure of leadership” even before the pandemic, Oberton said.

With nearly $4.9 billion in annual sales, Hologic is the world’s 26th-largest medical device manufacturer, according to Medical Design & Outsourcing‘s Medtech Big 100 ranking by revenue.

That Medtech Big 100 ranking also tracks employment over time. Hologic repor…

Baxter is closing Massachusetts facility

Baxter (NYSE: BAX) + will shutter its manufacturing facility in Acton, Massachusetts.

In a statement shared with MassDevice, the company said: “We made the difficult decision to close manufacturing operations at our Acton location. We are moving these operations to another facility within Baxter’s integrated supply chain network. We appreciate our Acton-based colleagues’ dedication and service and are providing transition benefits to impacted employees.”

Baxter is letting go of 59 workers as a result of the facility closure, according to a WARN notice filed with the state of Massachusetts. The layoffs are effective May 3 to Jun 30.

According to local media reports, Baxter acquired the Acton facility through its $12.5 billion purchase of Hillrom in 2021.

More than a year ago, the company announced a cost reduction program. The Deerfield, Illinois-based company — maker of renal care produc…

Exploring the forces behind 2024 biotech layoffs: A visual journey

[Andrii Yalanskyi/Adobe Stock]

Biotech layoffs continue to pummel the industry in early 2024 — albeit at a slightly lower clip than in 2023. Smaller firms continue to bear the brunt of funding woes and disappointing clinical data. From January to February, operational reorganizations fueled 45 layoff announcements, followed closely by strategic pivots in 37 events. Other common drivers of job cuts include funding challenges and project restructuring.

The Sankey diagram below highlights the web of factors driving the 2024 biotech layoffs for select companies, from operational changes to clinical failures. Think of it like a map tracking why employers let go of workers, which can span multiple reasons. The width of the lines is proportional to the number of employees affected by each layoff. Note, some of the layoff counts are estimated based on percentages and the most recent available employee counts.

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Mapping the more than 1,000 biotech and pharma layoffs in January 2024

[Gorodenkoff/Adobe Stock]

On the heels of a strong year of FDA approvals, there are signs in early 2024 that the biotech sector is recovering. Examples include two recent biotech IPOs, signs of investor optimism and continued M&A momentum. But the biotech sector continues to see a significant number of layoffs. Major layoffs in early 2024 include companies like Cara Therapeutics, Ikena Oncology, Pfizer, and Sana Biotechnology. In early 2024, the rate of layoff events has continued at roughly the same clip over the past several months. Altogether, there were more than 1,300 job cuts in January.

Public companies driving the most layoffs

In terms of the source of the layoffs, public companies such as Pfizer, Intellia Therapeutics, and Thermo Fisher Scientific are letting the most workers go, with more than 600 layoffs in January 2024. Next in line are clinical-stage companies such as the oncology-focused biotec…

Cook Medical is laying off 500 workers amid strategic realignment

Cook Medical announced today that it will lay off 500 workers — about 4% of its global workforce.

In a message to employees posted on the Bloomington, Indiana–based medtech company’s website, Cook Medical President Pete Yonkman described the layoffs as the “most difficult decision we have had to make in support of our strategy.”

“The last several years have brought significant change to our customers, our supply chain, and the way we work,” Yonkman said. “To ensure that we are positioned to be successful in this new world, our global leadership teams have implemented a new five-year vision and strategic plan that were informed by extensive feedback from our customers, employees, and leadership teams.”

Impacted employees inside the U.S. will receive an email between 8 and 9 a.m. Eastern time tomorrow. Yonkman said senior leadership outside the U.S. would make sure employees would be notified as quickly as possible…

Here’s MassDevice’s medtech layoffs tips line

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