Illumina, a leading biotechnology company in DNA-sequencing, laid off 151 workers in San Diego as it tries to cut $100 million in costs this year.
In April, the San Diego-based biotech committed to reducing its annual expenses by more than $100 million. Part of this effort included local headcount reductions earlier this summer — while noting that more would be coming in the third quarter — and plans to scale back its real estate footprint.
Illumina framed these workforce reductions “as part of a multiyear plan to realign its operating expenses while maintaining focus on its innovation roap and sustainable long-term growth,” in the 8-K filing submitted to the SEC in June.
Illumina begins cutting jobs amid turmoil, plans to reduce office space in San DiegoThis week, the company submitted Worker Adjustment and Retraining Notification Act (WARN) filings to the state outlining the affected positions at its University City headquarters and 4795 Executive Drive site.
The latest headcount reductions hit technical positions in manufacturing and engineering as well as on the business side with talent acquisition, according to the notice.
As of the end of 2022, the company employed 6,300 workers in the Americas and 10,200 worldwide.
The San Diego layoffs took effect Aug. 14. Impacted employees will receive pay and benefits through Sept. 11, according to the WARN notice. The company has also made smaller workforce reductions at two Bay Area locations this year.
This is the third San Diego layoff for Illumina in the past 12 months, but it is not the largest reduction. In November, the company slashed its global headcount by 5 percent, including 207 jobs in San Diego.
“We understand the impact this decision has on affected employees and their families, and we are committed to providing to these employees in their transitions and treating them with gratitude and respect,” a company spokesperson said in a statement.
Illumina’s efforts to cut costs also come amid a tumultuous few months for the company, including the resignation of its longtime CEO, Francis deSouza. He stepped down in June following a proxy fight with activist investor Carl Icahn, who was discontent with the company’s leaders pushing through a $7.1 billion acquisition of early cancer detection startup Grail.
Illumina completed its purchase of Grail in August 2021. Eventually, the U.S. Federal Trade Commission and Europe’s top antitrust regulator rejected the merger as anti-competitive and ordered Illumina to divest Grail.
The company is fighting the regulatory orders in court. It expects rulings by the end of this year or early next.
Last week, Illumina also disclosed that the SEC has initiated a new investigation into the Grail deal.
