As we progress into 2023, the lab diagnostics industry continues to experience more layoffs. In a recent G2 Intelligence Laboratory Industry Report article, writer and analyst Glenn Demby provides an overview of the layoffs announced by major companies in the first half of 2023 and the key trends revealed.
Demby notes that, in terms of the US economy overall, job cuts are the second highest they have been in the first half of the year since 2009. He adds that these layoffs are mainly driven by today’s difficult overall market/economic conditions.
However, for diagnostic companies specifically, declining COVID-19 testing demand has also played a major role in layoffs, with Demby noting that of the 32 key companies included in his analysis, nine had developed FDA-cleared COVID-19 tests.
Positive Signs for the Lab Industry
The good news is that there are signs that the latest wave of layoffs, “at least across the wider economy” has reached its peak, according to Demby, however, he adds that there will likely be at least some more job cuts in the diagnostics sector, based on restructuring plans announced by several key companies.
On another positive note, a recent life sciences survey shows that unemployment rates in this sector “remain well below the national average” and that the “life sciences have historically fared well during recessions” Demby writes.
To get the complete analysis of the lab industry layoffs situation in 2023 so far, as well as our running Scorecard of layoff announcements, sign in to your Laboratory Industry Report subscription, or sign up for a free trial.