Layoffs in California: Dexcom Announced 535 Layoffs at San Diego Facility
Dexcom plans to lay off 535 employees in California, contributing to the ongoing trend of job cuts within the medical device industry.
According to a Worker Adjustment and Retraining Notification filing with California, the anticipated initial date of separation is July 26, and the job cuts are linked to a specific location in San Diego.
“Dexcom has decided to centralize its [U.S.] manufacturing operations in Mesa, Arizona, and refocus our San Diego operations as a Global Center of Excellence for Product Innovation,” company spokesperson James McIntosh wrote in an emailed statement.
More job cuts in the medtech industry have been announced, adding to the ongoing trend of layoffs in the sector for the past year and a half. There have been several layoffs this year from prominent medical technology companies, such as Medtronic, Zimmer Biomet, Illumina, and Baxter.
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Several smaller companies, including Osso VR, Agilent Technologies, and Dermtech, have announced layoff plans for 2024. Additionally, Cue Health has made the difficult decision to cut hundreds of jobs as it winds down its operations as per MedTechDive.
Dexcom’s McIntosh announced plans to transform commercial manufacturing facilities in San Diego to support product process development. This transformation will involve a reduction in the manufacturing workforce in San Diego as the company transitions to its new focus in the coming years.
McIntosh declined to provide any details regarding the potential cost savings resulting from the job cuts at Dexcom. According to a federal filing, the company had around 9,600 employees worldwide as of December 31st.
Dexcom is set to undergo layoffs despite a significant 24% year-over-year revenue growth, reaching $921 million in the first quarter. In February, the diabetes tech firm announced its full-year revenue for 2023, which reached an impressive $3.62 billion. This marked a significant growth of 24% compared to the previous year.
Dexcom recently obtained clearance from the Food and Drug Administration for the first over-the-counter glucose monitor in March. Dexcom and Abbott, both granted clearance earlier this year, are set to introduce their products to the U.S. market in the near future. This move has the potential to attract a significant number of new users for both companies.
Dexcom is set to release its second-quarter financial results on July 25.
In 2021, the company had to make the difficult decision to lay off 178 individuals, as reported by a California WARN report.
