Biotech company Cue Health plans to cut 230 employees, or 49% of its staff, the organization said in a Securities and Exchange Commission filing May 1, marking its fifth round of layoffs since January 2023.
The staff reduction is part of the company's latest cost-savings plan to allow it to focus more on other priorities, specifically an at-home digital testing program for several health conditions, a spokesperson said Friday.
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"In close collaboration with Cue’s board of directors and strategic advisers, the company has made the decision to refocus its business on its core technology offering, the Cue Health Monitoring System, specifically on developing and deploying its diagnostic products into the point of care market," the spokesperson said. "In alignment with this strategy, Cue has significantly reduced, or removed altogether, functions that don’t directly support this strategy."
In January, the company initially announced it planned to cut 151 employees, or 24% of its staff, as part of its cost reduction plan, according to a previous SEC filing. At that time, the company estimated it would spend between $3.2 million and $4 million on one-time termination-related expenses, including payments for salary, benefits and unused paid time off. These layoffs were expected to occur in March.
Prior to the latest round of cuts, the company had laid off over 800 employees since January 2023.
Cue Health has not yet made an estimate on what it will spend on severance costs related to this round of layoffs or when the layoffs would go into effect, according to the recent filing.
The company, best known for production of COVID-19 rapid tests, did not comment on how the cuts will affect the organization financially and operationally.
