A major decision has been made by Labcorp concerning its operations in Los Angeles, as the company plans to reduce its workforce significantly. This move involves laying off 73 employees and closing down a facility that plays a crucial role in genetic testing. The layoffs will occur gradually over several months, beginning in May and concluding mostly by September. Furthermore, this is not an isolated event; it follows previous reductions in other locations such as Santa Fe Springs. Despite experiencing growth in sales during the fourth quarter of last year, Labcorp continues to streamline its operations.
In a Worker Adjustment and Retraining Notification (WARN) letter submitted to California authorities, Labcorp outlined its intentions regarding staffing adjustments at its Los Angeles site. Positions will be progressively eliminated throughout specific months, with some roles being reassigned either remotely or to nearby locations. Among the total workforce listed, approximately 60% face termination due to the closure. A facilities manager position will remain until late 2025 or early 2026, ensuring a smooth transition.
This strategic move comes after Labcorp previously downsized its team in Santa Fe Springs ten months ago, impacting over 80 individuals. Over the past two years, nearly 400 jobs have been cut across California and New Jersey. Additionally, another round of layoffs occurred in Texas during the latter half of 2024, affecting 132 employees. These actions reflect broader organizational changes amidst financial challenges and restructuring efforts.
Despite these measures, Labcorp reported impressive revenue figures for the recent quarter, showing almost a 10% increase year-over-year to reach $3.3 billion. CFO Julia Wang highlighted during an earnings call that projected diagnostic sales growth for 2025 stands around 7%, attributed equally to organic expansion and acquisitions finalized in 2024. This indicates that while cost-cutting measures are underway, the company remains focused on sustainable long-term development.
As Labcorp navigates through operational transformations, the emphasis remains on optimizing resources while maintaining growth momentum. By strategically reassigning certain positions and consolidating facilities, the organization aims to enhance efficiency without compromising service quality. Moving forward, stakeholders anticipate continued improvements aligned with market demands and corporate objectives.