On Monday, Illumina Inc (ILMN.O), a leading manufacturer of genetic sequencing equipment, announced the initiation of job cuts in response to the challenges posed by persistent inflation and the strength of the dollar. In addition, the company plans to reduce its workforce in the third quarter further and downsize its real estate presence in California, according to Reuters. These measures are part of Illumina’s strategy to decrease annualized expenses by over $100 million in 2023.
The company also announced its decision to reduce its workforce, withdraw from a section of its Foster City site, and contemplate the future of its entire 360,000-square-foot campus, which was inaugurated five years ago. Additionally, Illumina disclosed its intention to vacate a 625,000-square-foot campus located in San Diego.
According to health news website STAT, Illumina has already begun laying off 10 percent of its research and development team, as stated in internal emails. However, the exact number of employees affected has not been officially confirmed by the company. Earlier this month, Illumina announced the departure of CEO Francis deSouza, following a proxy battle with activist investor Carl Icahn.
The reduction in workforce started on June 21 and will result in charges of approximately $25 to $35 million, primarily incurred during the second quarter, as stated by Illumina. According to a regulatory filing, Illumina had around 10,200 full-time employees worldwide as of January 1.
According to the company’s website, Illumina has three locations in California. Its worldwide headquarters is located at 5200 Illumina Way (formerly 5200 Research Pl.) in San Diego. It’s i3 campus is also in San Diego at 4795 Executive Dr., and its office in Northern California is at 200 Lincoln Centre Dr. in Foster City. The landlord at the Lincoln Centre Dr. and Research Pl. is BioMed Realty, while the landlord at the company’s headquarters on Illumina Way is Alexandria Real Estate Equities.
