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Siemens Healthineers to Lay Off Hundreds Amid Reports of Possible Sale of IVD Business

This article has been corrected to clarify the extent of layoffs at the Flanders, New Jersey facility, which will continue operating with fewer employees.

NEW YORK – Siemens Healthineers said Friday it plans to lay off hundreds of employees at its 750-employee instrument manufacturing facilities in Flanders, New Jersey, to consolidate its Atellica Solution instrument manufacturing operations in a Dublin, Ireland, facility by September 2024.

The New Jersey Department of Labor and Workforce Development reported that Siemens has given notice so far of layoffs for 367 positions during 2023 and 2024, including layoffs that occurred earlier this year. Siemens officials said the decision to close the New Jersey facility followed an extensive review of its diagnostics instrument manufacturing network.

The company said in a statement that the affected employees will be eligible for severance and placement benefits as well as opportunities to apply for other positions in the organization, but the decision will result in job losses, mainly in manufacturing. The Flanders and Dublin facilities are used to manufacture elements of the Atellica platform, and the company said the consolidation will improve efficiency and provide cost savings.

"The decision to consolidate some manufacturing operations in Flanders does not impact other operations of the diagnostics business area of Siemens Healthineers or of Siemens Healthineers/Siemens businesses in New Jersey," the company said.

Siemens officials said the company undertook the review as part of its response to a combination of setbacks for its business performance including the effects of the COVID-19 pandemic, global inflation, supply chain difficulties, and labor shortages. The firm began work to reduce the complexity of its portfolio, create a leaner organization, and streamline its supply chain and company footprint.

The company also largely declined to comment Friday on reports by Reuters and Bloomberg that Siemens' leadership is considering sales or a cut-out of its in vitro diagnostics business as part of its ongoing transformation of the diagnostics business.

"The focus in our diagnostics business has been and remains currently only on transformation," the company said in a statement.

Siemens announced in November 2022 plans to halve its instrument portfolio by accelerating the retirement of older platforms in favor of focusing on its Atellica instrument line. This spring, the firm recorded €22 million ($23.6 million) in severance payments and €77 million in other transformation costs as part of a transformation into a leaner organization.