San Diego-based Illumina is taking steps to reduce its workforce as part of a long-term plan to optimize operating expenses and prioritize sustainable growth and innovation, the biotech revealed this week.
According to an SEC filing, the company — which sells integrated systems for the analysis of genetic variation and biological function — also foresees additional workforce reductions in the third quarter and is actively working towards reducing its global real estate footprint and associated costs. Various measures are being implemented to achieve cost savings, with a target of reducing annualized expenses by more than $100 million in 2023.
Based on estimates, the current reduction in workforce, initiated on June 21, 2023, and subsequent reductions throughout the year, are expected to result in aggregate charges ranging from approximately $25 million to $35 million. The majority of these charges are anticipated to be incurred in the second quarter of 2023, with a significant portion expected to be incurred by the end of the year. These charges primarily encompass cash expenditures related to severance payments, employee benefits, and associated costs.
Illumina also made the decision to downsize its global real estate presence by exiting its i3 campus in San Diego, California, and evaluating alternatives for its Foster City campus in California. The company currently carries assets on its balance sheet associated with these campuses, with respective valuations of approximately $60 million and $186 million.
Illumina is a market leader in DNA sequencing equipment and has approximately 10,000 employees.