Hologic to Shutter Undisclosed Number of International Facilities

Hologic recently outlined changes in its quarterly Form 10-Q filed with the SEC, writing that it plans to close an unspecified number of international facilities within its diagnostic division amid product discontinuations and restructuring. In the regulatory filing, the company did not disclose how many employees will be affected by the shutdowns, but said it expects to incur about $4 million to $8 million in severance costs related to the actions. Additionally, the medtech company said it is in discussions with works councils — bodies that represent employees in many European countries — connected to its restructuring efforts.

Hologic also “recorded accelerated depreciation of $7.2 million and a lease asset impairment charge of $12.5 million” in its fiscal first quarter as a result of its strategy changes, according to the filing.

Like many companies who offer diagnostic products, Hologic has seen noted decreases in revenue since the COVID-19 pandemic waned. In the first quarter, the company reported its total diagnostic revenue was down 20%. However, company spokesperson Bridget Perry told Medtech Dive, who originally reported the story, that “The international activity is not connected to COVID revenue.”

Hologic wrote in the SEC filing that “This action is expected to be completed by the end of calendar 2024.”

The news of the international closures and possible layoffs come not long after Hologic CFO Karleen Oberton recently scolded executives enacting layoffs in the medtech industry, telling The Wall Street Journal that the company has avoided these actions by carefully managing its hiring. Additionally, Oberton told the journal that, even before the COVID-19 pandemic, Hologic operated under a “philosophy that mass layoffs are a failure of leadership.”

Hologic did not respond to MD+DI’s request for comment.