![](/sites/default/files/styles/article_headlines/public/2020-05/stephen_macmillan.jpg?itok=ScLMu6-u)
Please do not leave this page until complete. This can take a few moments.
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.
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments