Dexcom Announces Major Restructuring and Leadership Changes

Dexcom, a leading diabetes technology company, has revealed significant organizational changes, including layoffs and a leadership transition, as it prepares for future growth and product launches.

Workforce Reduction and Operational Shifts

Dexcom has announced plans to lay off approximately 350 employees globally, representing about 3% of its total workforce. The restructuring effort includes the elimination of 196 positions in San Diego, where the company is headquartered. This move follows a previous round of cuts in 2024 when over 500 jobs were eliminated.

The latest round of layoffs is part of a broader restructuring initiative that involves changes to Dexcom's organizational model and operating structure. A key aspect of this restructuring is the continued transition of manufacturing and operations from San Diego to Mesa, Arizona. As a result, 134 operations roles in San Diego will be eliminated.

Despite these changes, San Diego will remain Dexcom's product innovation center and global headquarters. The affected positions span various departments, including manufacturing, sales, marketing, regulatory affairs, finance, and mechanical engineering.

Leadership Transition and Future Plans

In addition to the workforce changes, Dexcom has announced a significant leadership transition. Current CEO Kevin Sayer will step down in January 2026, with Chief Operating Officer Jake Leach set to take the helm. This change comes as the company prepares for the launch of its new 15-day version of the G7 glucose monitor, expected in the second half of 2025.

During its most recent earnings call, Dexcom reported strong financial performance, with revenue of $1.16 billion in the second quarter of 2025, representing a 15% increase year over year. Net income also saw a substantial rise of 25%, reaching $179.8 million. In light of these positive results, the company has raised its sales expectations for 2025.

Industry Implications and Market Outlook

The restructuring efforts at Dexcom reflect broader trends in the medical device industry, where companies are increasingly focused on operational efficiency and strategic positioning for future growth. The shift of manufacturing operations to Arizona aligns with industry-wide efforts to optimize production costs and streamline operations.

Dexcom's continued investment in product innovation, as evidenced by the upcoming launch of the extended-wear G7 glucose monitor, demonstrates the company's commitment to maintaining its position as a leader in diabetes technology. The leadership transition and organizational changes are likely aimed at positioning the company for sustained growth in an increasingly competitive market.

As Dexcom navigates these changes, the diabetes technology sector will be watching closely to see how these moves impact the company's market position and ability to deliver innovative products to patients with diabetes.