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Illumina starts job cuts, plans office exit to rein in costs
Global Banking & Finance Review®
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(Reuters) -Illumina Inc has commenced job cuts, the genetic sequencing equipment maker said on Monday, as it looks to cushion the impact of sticky inflation and a strong dollar on its
(Reuters) -Illumina Inc has commenced job cuts, the genetic sequencing equipment maker said on Monday, as it looks to cushion the impact of sticky inflation and a strong dollar on its business.
The company also intends to further cut workforce in the third quarter and reducing its real estate footprint in California as part of a plan to reduce annualized run rate expenses by more than $100 million in 2023.
Illumina has begun to lay off 10% of its research and development team, health news website STAT reported on Monday, citing internal emails.
However, the company did not confirm the number of employees it laid off.
Illumina, which had engaged in a proxy battle with activist investor Carl Icahn, earlier this month said CEO Francis deSouza had stepped down.
The reduction in workforce commenced on June 21 and will result in charges of about $25 to $35 million, the company said, with majority incurred in the second quarter.
Illumina’s core global workforce comprised about 10,200 full-time employees as of Jan. 1, according to a regulatory filing.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)
Workforce reduction refers to the process of decreasing the number of employees in a company, often to cut costs or improve efficiency. This can involve layoffs, voluntary separations, or other methods.
Corporate strategy is a plan that outlines how a company will achieve its goals and objectives. It includes decisions about resource allocation, market positioning, and competitive advantage.
Cost reduction is the process of decreasing expenses to improve profitability. This can involve various strategies, such as streamlining operations, renegotiating contracts, or reducing workforce.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
A strong dollar refers to a situation where the value of the U.S. dollar is high compared to other currencies. This can impact international trade, making U.S. exports more expensive and imports cheaper.
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