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Business

Siemens Healthineers announces 300 layoffs amid rumors of possible sale of its diagnostics unit

Nature

Changes are underway within Siemens Healthineers’ diagnostics business, although it is not yet clear how far these changes will go.

First, the company-verified news: According to a filing this month with the New Jersey Department of Labor, a total of 300 workers at the Siemens Healthcare Diagnostics division are expected to be laid off.

The layoffs involve workers in Morris County, New Jersey, and extend over a long period of time, with the reductions taking effect on 13 dates spanning from March of this year to the last day of 2024.

These 300 cuts include the 67 layoffs that Siemens confirmed earlier this year in another Worker Adjustment and Retraining Notice (WARN) with the state: This workforce reduction affected workers at Siemens Healthcare Diagnostics in Flanders, a town in Morris County, and took effect in September. .7, which is included in the new batch of dismissal dates.

According to a company statement, the layoffs are part of changes Siemens Healthineers began implementing in late 2022 to combat the negative effects of “the COVID-19 pandemic, global inflationary concerns, supply issues and labor shortages.”

The September reductions in Flanders came after Siemens chose to shift manufacturing of its Atellica Solution immunoassay modules to its Swords factory in Dublin, Ireland. The wider scale of the cuts extends in this direction: all production from the Atellica Solution platform is now on track to be moved to Dublin by September 2024, according to the statement.

The affected positions are primarily in the manufacturing sector, and a Siemens spokesperson said in the statement that laid-off employees will be eligible for severance and reclassification packages and will also have the opportunity to apply for other positions within the company. Siemens Healthineers and the Siemens Group as a whole. .

The cuts only concern positions related to the production of the Atellica Solution platform, and not the rest of the approximately 750 people currently working on the Flanders site. The consolidation also “does not impact other operations in Siemens Healthineers’ Diagnostics business segment or Siemens Healthineers/Siemens operations in New Jersey,” according to the release.

Reports this week suggesting Siemens Healthineers is exploring new options for the entire diagnostics division are less definitive.

In a report on Thursday, Bloomberg cited several anonymous sources “with knowledge of the matter” who said Siemens had brought in advisers to help it evaluate these options, which could potentially include a sale or exclusion of the business diagnostic which could be assessed as high. at 8 billion dollars.

Reuters doubled down on its report with information from its own anonymous source, “familiar with the situation”, who noted that the strategic review was in its early stages.

The possible sale or other form of separation would free Siemens from a division largely separate from the rest of the company’s portfolio, according to the sources, which could potentially streamline the business. The diagnostics division is stuck in a downward spiral this year – posting year-over-year declines of 24%, 39% and 20% in the first three quarters of 2023, respectively – thanks to the fall sales of its rapid COVID screening tests.

In a statement to Fierce Medtech, a Siemens Healthineers spokesperson said: “The focus in our Diagnostics business has been and currently remains solely on transformation. Beyond that, I’m afraid we can’t comment on market rumors.

This lack of official confirmation did not prevent investors from reacting positively: on Friday morning, the company’s share price had reached its highest level since the beginning of August, after having climbed around 5% compared to its closing price on Wednesday afternoon.

Nature

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