Dive Brief:
- Labcorp plans to lay off 73 employees as part of the closure of a site in Los Angeles.
- Labcorp will begin eliminating positions in May and largely complete the process by September, according to a Worker Adjustment and Retraining Notification letter filed with California.
- The company lists the plant as part of its consumer genetics business. The facility is authorized to run genetic and molecular tests.
Dive Insight:
Once layoffs begin in May, Labcorp plans to conduct subsequent rounds in June, August and September. Labcorp plans to keep a facilities manager on staff until late 2025 or early 2026, but is aiming to complete the rest of the layoffs in September.
The filing lists 120 employees by job title and 73 employees subject to elimination. Labcorp said in the WARN notice that “most but not all positions will be eliminated” as part of the closure of the facility. The company will reassign the remaining employees “to remote positions or nearby worksites.”
The request comes 10 months after Labcorp laid off 81 people as part of the closure of a site in Santa Fe Springs, a city in Los Angeles County. The layoffs contributed to Labcorp’s elimination of almost 400 jobs in California and New Jersey between Jan. 1, 2023, through June 30, 2024. Labcorp laid off a further 132 people in Texas in the second half of 2024.
Labcorp is closing the Los Angeles site after a fourth quarter in which sales grew nearly 10% year over year to $3.3 billion. The company is aiming to grow diagnostics sales by around 7% in 2025.
CFO Julia Wang said on an earnings call last month that the forecast growth is split evenly between organic business and acquisitions Labcorp completed in 2024.
