Cue Health Layoffs

Cue Health shut down entirely in May 2024, laying off all 180 remaining US employees including company leadership. The San Diego-based COVID testing company had already been planning to cut 230 workers, nearly half its staff, when the FDA accelerated its collapse by issuing a warning letter advising consumers to discard unused Cue COVID-19 tests due to a risk of false results. The board moved the final layoff date from July 1 to May 24, citing the "fluid nature of the situation." Revenue had fallen from $483.5 million in 2022 to $70.9 million in 2023 as post-pandemic demand dried up and federal testing funding evaporated. Both the CEO and CFO had already resigned earlier in 2024. The company had gone public in 2021 at a $2.3 billion valuation.

Reason: full company shutdown following FDA warning and post-pandemic revenue collapse

Source: fiercebiotech.com

Cue Health announced in early May 2024 that it would cut 230 employees, nearly half its workforce, as COVID-19 test revenue continued to collapse. The San Diego diagnostics company posted revenue of $70.9 million in 2023, a drop of 85% year-over-year, while net losses reached $373.5 million. A spokesperson said the company eliminated "functions that don't directly support" its Cue Health Monitoring System, refocusing entirely on point-of-care molecular testing. The cuts followed more than 200 additional positions eliminated in January 2024, and came as CEO Ayub Khattak had already left in March and CFO Aasim Javed announced his resignation effective May 13. The company was also seeking additional financing to meet its cash requirements.

Reason: Revenue collapse from declining COVID-19 test sales

Source: beckershospitalreview.com

San Diego health-tech company Cue Health laid off 245 employees, more than 30% of its global workforce, on February 2, 2024, in what the company called a strategic restructuring focused on its core diagnostic platform. The cuts reflected the collapse in COVID-19 testing demand that had defined Cue's business: revenue fell 85% year-over-year to $70.9 million in 2023, while the company posted a net loss of $373.5 million. A spokesperson said the company removed or scaled back functions that no longer directly supported its go-forward strategy. The February round was the fourth significant workforce reduction since 2022, a stretch that has also seen the departures of its CEO and CFO. Cue noted it may need additional financing to fund operations over the next twelve months.

Reason: Declining COVID-19 test revenue and cost restructuring

Source: sandiegouniontribune.com

Cue Health disclosed a workforce reduction affecting its San Diego operations in January 5, 2024. Approximately 94 roles were eliminated.

Source: 360dx.com

Cue Health disclosed a workforce reduction affecting its San Diego operations in April 28, 2023. Approximately 326 roles were eliminated.

Source: sec.gov