Both Quest Diagnostics and Qiagen recently announced separate layoffs and facility closures as one company consolidates and the other reaches a post-COVID-19 PCR breaking point.
Quest Diagnostics
Quest reported last week that it is closing a lab in Pennsylvania and laying of 121 employees at the site, according to the WARN notice. Focusing on reducing spending amid an expansion boom for the company — Quest has acquired PathAI’s diagnostic laboratory and Lifelabs in recent months — its initiative aims to find 3% in cost savings and productivity improvements every year.
Specifically targeting its Norristown lab, layoffs are planned to start in August and be completed by the end of 2024. Quest said it is consolidating its urine drug testing from the Norristown lab to its facility in Lenexa, Kansas, which tests urine, hair, and oral fluid specimens. The PA facility will continue to house a rapid response laboratory, pathology, and IT operations.
"This change only affects the Employer Solutions lab at the Norristown site, and we will continue to operate and employ Quest colleagues at this location in other service areas, including in our rapid-response laboratory, pathology and IT,” according to the company, via WFMZ News.
The company is offering relocation packages to affected employees who transition to working at the Lenexa facility and severance benefits to those laid off.
This is not Quests first foray into consolidation. In fact, consolidation drove growth at its Norristown site in 2021 when the company relocated operations from another PA facility to the site.
Qiagen
Qiagen has officially handed in the towel for its COVID-19 PCR business, announcing that it will close its Ann Arbor test manufacturing plant as it discontinues two PCR testing systems, resulting in the layoff of 175 employees.
In June, the company said it would discontinue the NeuMoDx 96 and 288 molecular systems as demand continues to sharply decline post-pandemic. This would allow resources to be directed to other product lines, according to Qiagen. Sales from the segment were reported in 2023 as having a 50% decrease year over year — $42 million.
Previously, Qiagen was also considering strategic options for its NeuMoDx business, including finding partners or shutting down operations.
The Ann Arbor facility closing will result in the planned layoffs which will start in September and continue through November 2025, according to the WARN notice. The company said it expects a pre-tax restructuring charge of about $400 million. This amount includes inventory, long-term assets, commitments to customers and suppliers, severance payments, as well other obligations.
“… the first group of employees (53) is scheduled to be separated beginning on September 30, 2024; the second group of employees (34) is scheduled to be separated beginning on December 31, 2024; the third group of employees (71) is scheduled to be separated beginning on March 31, 2025 to June 30, 2025, and the final group of employees (17) is scheduled to be separated beginning on September 30, 2025 to November 30, 2025, at which time the facility will shut down,” according to the Warn notice.
Support will continue for existing NeuMoDx users into 2025 including maintenance, technical support, and providing consumables, according to the company.
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