Pacific Biosciences is letting go of 190 employees, according to the company, as part of cost-cutting measures after disappointing sales of its DNA sequencers.
The company employed just under 800 employees at the start of the year, according to financial filings, and the cuts amount to almost a quarter of that number. The layoffs were outlined Monday in data that California companies are required to post when they intend to eliminate roles, a law known as the Worker Adjustment and Retraining Notification Act, or WARN.
“In response to ongoing headwinds that have affected our performance, we are making difficult but necessary changes to our organization,” a company spokesperson said in a statement to Endpoints News.
The company, better known as PacBio, seemed to be heading into the year with momentum. Sales were rising each quarter amid growing demand for its technology that reads lengthy stretches of genetic code, making the company a challenger to market leader Illumina.
But two weeks ago, PacBio announced flat revenue and lowered its sales guidance for 2024, which the company blamed on delayed instrument purchases and slow uptake from small and mid-size labs. Accompanying the news were plans to cut operating costs by $50 million to $75 million by the end of this year.
The company’s downsizing includes 108 layoffs in San Diego, where PacBio’s office will be shuttered, and 71 layoffs in Menlo Park, the company’s headquarters, according to the WARN notices. PacBio, which also has offices in London and Asia, did not disclose where the remaining job cuts will occur.
Dan Brennan, an analyst at the investment bank TD Cowen, said in a research note earlier this month that PacBio’s latest sales data came as a disappointment after strong growth.
“It will likely take many quarters of performance to restore confidence,” he said.