Roche Diagnostics Blames Job Cuts on Slow Diabetes Sales

Roche Diagnostics (Indianapolis, IN) will cut an undisclosed number of employees at two of its facilities. The latest job cuts come as the company faces growing difficulties in the diabetes market.

On Monday, a spokesperson for the company declined to state the total number of jobs that would be cut. However, the spokesperson did state that the two affected locations were a manufacturing operation located near Indianapolis and a customer service center located near Fishers. However, the company will retain at least 3,000 employees after the cuts go through.

In a company statement, Roche Diagnostics described the restructuring as essential for it adapt to "rapidly evolving" changes in the diabetes market.

"Roche's diabetes care business in the U.S. is responding by making changes to its customer service and manufacturing operations, which includes the elimination of some jobs," noted the company in a statement. "Roche is confident that its diabetes care business in the U.S. is well positioned for the future."

The latest mixup raises questions about the future of Roche's diabetes segment. In May of this year, Roche Holding AG (Roche's Swiss parent) was reported to be considering a sale of its blood glucose monitoring segment.

In the early months of this year, the United States Centers for Medicare & Medicaid Services announced that reimbursement rates for diabetes test supplies would be cut by approximately three-fourths.