Stephen MacMillan, chairman, CEO and president of Hologic
February 8, 2024
Hologic expects layoffs at international facilities in 2024, totaling up to $8M in severance
Photo | Grant Welker
Hologic's Marlborough headquarters
Marlborough medical device manufacturer Hologic is anticipating to make an unspecified number of layoffs at international locations this year amid a restructuring of its diagnostics division, as sales of the company’s COVID-19 tests have declined.
The restructuring was announced in the company’s quarterly report to the Securities and Exchange Commission filed on Feb. 8. The company’s revenue decreased 5.7% for the first quarter of fiscal 2024, with diagnostics-related revenue declining 19.9%.
Hologic expects to close some of its facilities in 2024 as a result of changes in business strategies and the discontinuation of sale of certain products, the company said in its SEC filings. The company said total severance benefits related to this action will be approximately $4 to $8 million and expects the restructuring to be complete by the end of the 2024 calendar year.
The filing didn’t specify where or when the layoffs would take place, except they are part of a restructuring of its diagnostics division, which has been losing money due to a drop in sale of COVID tests.
When contacted by WBJ, Bridget Perry, director of divisional communications for Hologic, said the company’s restructuring plans involve certain international locations, but declined to give further details.
The company has begun discussions with relevant work councils regarding the closures and the impact on employees, according to the SEC filings. Work councils are a group of employees delegated by others to represent their interests to their employers. This form of organized labor is most commonly found in European countries.
Hologic has locations in 11 European nations. Work councils are also obligatory in Brazil, where Hologic has a facility. The company has additional international locations in Costa Rica, Canada, Asia, and Oceania.
Hologic closed its Danbury, Connecticut facility in April 2022 and transferred manufacturing services there to its locations in Marlborough and Delaware. The company expects this transition to be complete by the third quarter of fiscal 2025.
In total, Hologic terminated approximately 128 employees in fiscals 2022 and 2023, according to its 2023 annual report to the SEC.
For its first-quarter financials for fiscal 2024, despite the decrease in overall revenue, Hologic Chairman, President and CEO Stephen MacMillan expressed satisfaction with the company’s performance, focusing on growth the company has seen outside of its COVID-related products.
“We estimate our organic growth rate ex. COVID-19 was in the high single digits, highlighting the bigger, faster, stronger Hologic we are today,” MacMillan said in a Feb. 1 press release accompanying the first-quarter earnings. “Each one of our divisions delivered solid results setting the stage for another strong fiscal year.”
Excluding COVID-19 revenues, total organic revenue grew 6.1% compared to the first quarter of fiscal 2023, according to the release.
Hologic promoted Essex Mitchell to chief operating officer on Jan 1. Mitchell previously served as the company’s division president of GYN surgical solutions.
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