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Covid tester Cue Health announces job cuts affecting 388 jobs after rapid pandemic growth

By Nithya Bose in US business news, posted January 11, 2023

Cue Health is laying off 388 people in a second round of layoffs as it makes further cuts across the business.

The job cuts will go into effect in early March and reduce its global workforce by 26 percent.

The job cuts will happen across a range of business departments, although a number of the roles eliminated are "machine operators."

Most of the laid-off staff are based at the testing company's location at 9877 Waples Street in San Diego.

The others were employed at its other seven Sorrento Valley locations and two Vista sites.

In addition, 64 remote workers from California and other states have been let go.

In an WARN notice the company said “none [of the locations] will be permanently closed due to this layoff.”

Staff who do lose their jobs will recieve severance and benefits, costing Cue $6 million to $8 million.

The company has already reduced its workforce in less than a year after laying off 170 employees in June.

The COVID-19 test maker has gone through a rapid growth period during the pandemic where it expanded from just 99 full-time staff in January 2020 to about 1,585 by the end of 2021.

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The biotech was among a a number of of health-tech firms that went public or received venture funding early in the pandemic.

Cue made an approximately $200 million IPO in September 2021.

Now, it is among the growing list of companies launching layoffs or making cost-cutting efforts.

Several health-centered firms like Cue that focused on the COVID-19 response are now struggling with the decline in government funding and low demand for testing.

Source: The San Diego Union-Tribune

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