In New Jersey, Germany-based Siemens Healthineers has facilities in Flanders, Iselin and Princeton. - SIEMENS HEALTHINEERS
In New Jersey, Germany-based Siemens Healthineers has facilities in Flanders, Iselin and Princeton. - SIEMENS HEALTHINEERS
Jessica Perry//March 15, 2024//
Another round of layoffs is hitting Siemens Healthcare Diagnostics Inc.
In a March WARN notice filing with the state, the company indicated cuts of 162 positions in Flanders. Effective dates range from September 2024 through March 2025.
According to a company representative, the announcement is consistent with past reductions and part of a total 300 eliminated positions announced in November 2023.
The layoffs are a result of Siemens Healthineers decision to stop production of certain instruments at its Morris County site. According to the company, these products are already made in another location, as well.
“At the end of 2022, Siemens Healthineers announced that due to a variety of factors, including external headwinds … several measures were being put in place to compensate for the adverse impacts on our company’s business performance. These measures served to reduce the complexity of our portfolio, create a leaner organization, and streamline our supply chain and company footprint,” the company said in a statement shared with NJBIZ.
Siemen’s cited challenges such as effects from the COVID-19 pandemic, global inflation, supply chain disruptions and labor shortages.
The end of instrument manufacturing in Flanders was previously set for September 2024. According to the company’s statement, that timeline is accelerated to May 2024.
“The Flanders site will continue to produce instruments that are used in the testing of in vitro laboratory diagnostic solutions. The site also will continue to host R&D capabilities and other adjacent functions,” Siemens said.
Despite the shortened timeline, affected Siemens Healthineers employees at the Flanders site are still eligible for the original severance, COBRA subsidies and outplacement assistance upon separation, the company said.
In its first quarter 2024 results released Feb. 1, Siemens Healthineers beat expectations, touted “strong growth” as laying the foundation for a successful year. The company report a 5.7% increase in revenue for Q1 to $5.17 billion.
Beyond Flanders, Siemens Healthineers has locations in Iselin and Princeton.