Siemens Healthineers has laid off 67 employees at a diagnostics facility in Flanders, New Jersey that will go into effect on Sept. 7. The facility, which supports 800 employees, is reportedly shutting down its Atellica Solution Immunoassay (IM) module manufacturing as it consolidates it to its Swords site in Dublin, Ireland.
"Following an extensive review of the company’s diagnostics instrument manufacturing network for its laboratory solutions portfolio, we’re announcing that Siemens Healthineers will consolidate all Atellica Solution IM module manufacturing to our Swords site in Dublin, Ireland, effective September 1, 2023," a representative from Siemens Healthineers told MD+DI. "As of that date, Atellica IM systems will no longer be manufactured in Flanders, New Jersey."
The WARN notice from Siemens was received by the state of New Jersey on June 8, citing a variety of external economic factors. Only last month, the company’s 2Q23 revenue showed splinters surfacing from tapering rapid COVID-19 antigen test demand, falling 39%.
According to an anonymous poster on TheLayoff.com, employees were quickly made aware of the layoffs, posting in detail about it on the TheLayoff.com only one day after the WARN notice was sent to the state. They wrote that the employees involved in the cuts were full time, and many had allegedly been with the company for five to 15+ years.
“Most of these come from the Atellica IM subassembly, assembly, and configuration/test areas,” the poster wrote. “As of writing, none of these employees have been offered positions elsewhere in the company. This entire production line is being shut down, with the Swords, Ireland location taking all of the IM production.”
Affected Flanders employees, according to Siemens, will be eligible for severance and outplacement benefits under company policy once the separation is complete and can apply for other positions with Siemens Healthineers and the broader Siemens companies.
The company alluded to these potential results in late 2022 when it announced an overhaul of its diagnostics division, with expected savings of around €300 million each year by 2025. “At diagnostics we have come to the conclusion that the dramatically changed macroeconomic environment demands immediate and comprehensive measures," Siemens Healthineers CEO Bernd Montag told investors in November 2022, according to a previous article for MD+DI.
"At the end of 2022, Siemens Healthineers announced that due to a variety of external headwinds — including effects from the COVID-19 pandemic, global inflationary concerns, supply issues, and labor shortages — several measures were being put in place to compensate for the adverse impacts on our company’s business performance," a company representative told MD+DI. "These measures reduce the complexity of our portfolio, create a leaner organization, and streamline our supply chain and company footprint."
Additionally, while the company didn’t specifically mention workforce reduction at the time, Reuters reported that the overall plan would involve job cuts and abandoning some locations, citing sources from within the company.
One example of how the company has already put the overall into practice is the May 2023 announcement that its throwing in the towel and discontinuing use of its Corindus surgical robotics for cardiology procedures. "We have made a business decision to stop selling into the cardiology field and to stop developing in the cardiology field," said Jochen Schmitz, CFO of Siemens Healthineers, in a previous article for MD+DI.
The company said that as it continues restructuring, it will provide transparent communication to employees.
"Restructuring and reduction of the workforce is never painless," a company representative said. "Simplifying our portfolio, including sunsetting platforms, inevitably affects certain locations and roles. We continue to provide transparent communications on changes to affected employees but cannot yet comment in public on the exact number of people."