Illumina starts workforce reduction & downsizing real estate

Illumina (NASDAQ:) announced it has started reducing its workforce as part of a long-term plan to realign its operating expenses while remaining committed to its innovation roadmap and sustainable long-term growth.

The company plans to continue reducing headcount in Q3, downsize its global real estate presence, and implement other measures to decrease expenses. Illumina aims to achieve a reduction of over $100 million in annualized expenses by 2023.

The company anticipates total charges of around $25-$35M for this reduction in force, as well as further reductions later this year. The majority of these charges are expected to occur in Q2/23, and almost all of them will be incurred by the end of 2023. These charges will mainly involve cash expenditures for severance payments, employee benefits, and related costs.

Furthermore, the company announced a plan to reduce its global real estate footprint by exiting its i3 campus in San Diego, California, and evaluating its options with respect to its campus in Foster City, California.

The company has recorded assets on its balance sheet for these campuses, with approximate values of $60M and $186M, respectively.