Illumina Announces Layoffs at San Diego Headquarters Amid Ongoing Industry Restructuring

Illumina, a leading manufacturer of DNA sequencing systems, has revealed plans to lay off 96 employees at its San Diego headquarters. This latest round of job cuts, set to begin in April, marks another significant development in the company's ongoing restructuring efforts under new CEO Jacob Thaysen.

Illumina's Workforce Reduction Strategy

The layoffs, disclosed through a Worker Adjustment and Retraining Notification filed in California, will be implemented between April and August of this year. Affected employees were notified by February 12, according to company statements. An Illumina spokesperson emphasized that these cuts are not part of a broad-based reduction, stating, "We have created new roles and reduced others. Illumina continues to invest in advancing our strategy while also ensuring our structure, talent, and operating costs are aligned to support it."

This announcement follows a series of job terminations at Illumina's headquarters, including 49 positions eliminated on October 1, 2024, and January 24, 2025. Additionally, the company cut 111 headquarters employees in March 2024. These reductions are part of a larger trend, with Illumina having laid off approximately 12% of its global workforce over the past year in pursuit of cost savings and improved margins.

Industry-Wide Restructuring and Strategic Shifts

Illumina's workforce adjustments come in the wake of significant corporate changes, including the spinoff of cancer test maker Grail in June 2024. This divestiture followed a prolonged battle with regulators who opposed the acquisition. The controversy surrounding the Grail transaction had previously led to activist investor Carl Icahn launching a proxy contest, resulting in the resignation of former CEO Francis deSouza in June 2023.

The genomics giant is not alone in its restructuring efforts. Other prominent medtech companies have also announced layoffs in recent years, citing profit pressures and shifting strategic priorities. Staar Surgical recently disclosed plans to lay off 115 employees at two California facilities, while Thermo Fisher Scientific intends to cut 300 jobs across two sites in Massachusetts.

A MedTech Dive analysis tracked over 14,000 layoffs across the industry from January 2023 to mid-2024, highlighting the widespread nature of these workforce reductions. As companies like Illumina navigate challenges in the post-pandemic landscape, industry observers are closely monitoring how these strategic shifts will impact innovation and market dynamics in the genomics and broader life sciences sectors.