Cue Health laid off another 326 workers, or about 30% of the home diagnostics company’s workforce, as part of a new cost reduction plan.
The cuts mark a second round of layoffs this year. In January, Cue laid off 388 employees, about 26% of its workforce.
In a filing with the Securities and Exchange Commission, Cue said it had approved the new plan at the end of last month, aiming to “reduce the company’s cost structure and improve its operational efficiency” beyond the cost reduction plan implemented early this year.
“As you are well aware, we have been navigating a difficult macroeconomic environment that continues to pose unique challenges for our sector,” Ayub Khattak, Cue’s cofounder, chairman and CEO, wrote in a letter to employees. “In addition, the test menu expansion efforts and new product launches that so many of you are working on have been progressing well but are still early in terms of revenue generation. Therefore, we remain in an ‘in-between period’ at Cue: between the launch of our COVID-19 product and the rollout of our expanded test menu and integrated care platform.”
THE LARGER TREND
Cue Health went public in 2021, shortly after receiving emergency use authorization from the FDA for an at-home, over-the-counter COVID-19 molecular diagnostic test. The test, which had previously received an EUA for point-of-care use, works by inserting the test cartridge into the company’s Cue Reader, delivering results to a smartphone app.
The company has since been working to develop more diagnostics compatible with its Reader. In a yearly report filed with the SEC, Cue said it had submitted to the FDA for full clearance of its COVID-19 test about a year ago, and it has prepared a submission for a flu molecular test. It’s also submitted for an EUA for a combination flu and COVID-19 test and recently received emergency clearance for an mpox test.
The company has also expanded with a virtual care platform and test kits that are sent away to a lab for processing. On Monday, Cue announced it would add a pharmacy offering to its virtual care platform for concerns like erectile dysfunction, herpes, birth control and hair loss.