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New round of lay offs sees Siemens Healthineers cutting 750 jobs

Siemens Healthineers has confirmed that it plans to lay off as many as 750 members of staff from its diagnostics and manufacturing division amid restructuring efforts across the company.

In a notice to the US state of New Jersey, the firm announced that it would end 300 jobs at Siemens Healthcare Diagnostics, along with 750 jobs at its instrument manufacturing facilities in Flanders, New Jersey.

The firm announced the layoffs as it seeks to transfer manufacturing of its Atellica Solution instrument operations to Dublin by the end of 2024.

The notice shows that 300 of the proposed layoffs will centre around the firm’s diagnostics business after the company announced in its 2023 Q4 report that it would be restructuring itself in a bid to save €300m.

Many of the lay-offs had previously been announced, but the additional 300 jobs in New Jersey bring the total up to 750 across the business. New Jersey law requires that layoffs involving 50 or more members of staff require the state to be formally notified.

Following the announcement Siemens Healthineer’s stock price dropped from an estimated €49.50 per share on Friday 3 November, down to €47.46 on Tuesday 7 November.

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By GlobalData

In August of this year, the company confirmed a 20% year-over-year revenue decline to about €1.1bn for its diagnostics arm in its third quarter, blaming the decline on the dropping sales of Covid-19 rapid antigen tests.

It also comes as Reuters reports that the company may be looking to sell off its diagnostic imaging arm.

GlobalData’s Healthcare Intelligence Centre found that in 2022 Siemens Healthineers saw  revenue of around $25.6bn , up more than 20% from 2021.

Medical Device Network has contacted Siemens for comment but received no reply.

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