Dive Brief:
- QuidelOrtho plans to reduce its global workforce by under 10% as part of a push to cut costs and focus on growth opportunities in areas such as molecular diagnostics, interim CEO Michael Iskra said in a recent presentation to investors.
- The diagnostics company is accelerating a previously announced headcount reduction plan, Iskra said at the Raymond James investor conference. A QuidelOrtho spokesperson declined to provide further detail on the job reductions or facility closings.
- The San Diego-based company fired longtime CEO Doug Bryant last month following weak fourth-quarter results dragged down by a year-over-year decline in COVID-19 testing.
Dive Insight:
QuidelOrtho swung to a net loss in fiscal 2023, its first full year of operation as a combined company. Quidel paid $6 billion in 2022 to acquire Ortho Clinical Diagnostics, a Johnson & Johnson spinout.
At the time of the deal’s closing in May 2022, QuidelOrtho said its combined workforce numbered about 6,000 employees.
As of Dec. 31, 2023, the company had about 7,100 employees worldwide, with 4,200 in the U.S., according to its annual report.
Iskra, at the investor conference last week, said “less than 10%” of the company’s workforce would be impacted by the headcount reduction plan, as the company expands the scope of its cost-savings initiative. He also said the company was moving quickly to complete the plan.
“The headcount opportunity, I think we looked to have completed by the end of Q2. In the last week and a half, we’ve accelerated that timeline. We’ve increased the target that we’re going to go after,” Iskra said.
When Bryant addressed job cuts on the company’s fourth-quarter call in February, the then-CEO said cost-reduction efforts were expected to reduce headcount by 5% to 6%. Bryant said QuidelOrtho had initiated a “senior level management de-layering effort” and was evaluating its real estate footprint with an eye toward consolidating facilities, primarily in the U.S.
Iskra, at the Raymond James event, said the company was focused on cost savings initiatives to address inflation challenges, improve merger synergies and position the company to take advantage of growth opportunities.
“Coming out of Q4 into Q1, there’s a lot of effort underway for margin restoration,” Iskra said. “We’ve got to find a way to change our cost basis in a few areas.”
