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Siemens plans layoffs in Morris County

Kimberly Redmond//June 20, 2023//

In New Jersey, Germany-based Siemens Healthineers has facilities in Flanders, Iselin and Princeton.

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.

In New Jersey, Germany-based Siemens Healthineers has facilities in Flanders, Iselin and Princeton. - SIEMENS HEALTHINEERS

Siemens plans layoffs in Morris County

Kimberly Redmond//June 20, 2023//

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Siemens Healthineers plans to cut dozens of jobs at its facilities in Flanders as part of a restructuring of the German medtech giant’s diagnostics division.

According to a notice filed with the New Jersey Department of Labor and Workforce Development, the will take effect Sept. 7 and impact 67 employees.

In a statement to NJBIZ, Siemens said the reductions are related to a decision to transfer all of its Atellica Solution IM (immunoassay) module to a company site in Dublin, Ireland, starting Sept. 1. The consolidation follows “an extensive review of the company’s diagnostics instrument manufacturing network for its laboratory solutions portfolio,” Siemens said.

According to the statement, there are around 800 employees at the company’s Flanders location and the cuts will affect only manufacturing workers.

“Upon separation, affected Flanders employees of Siemens Healthineers will be eligible for severance and outplacement benefits under the terms of the company’s policy, and will have the opportunity to apply for other positions within the Siemens Healthineers organization and the broader group of Siemens companies,” the company said in a statement to NJBIZ.

In 2015, the 160,000-square-foot Flanders facility – which includes manufacturing, warehouses, offices and lab space – debuted a 147,200-square-foot expansion that enabled Siemens to more than double its local workforce to around 950 employees. The upgrades were made possible by a $36.6 million tax credit over the next decade from the New Jersey State Economic Development Authority to entice Siemens to stay in the Garden State and renovate its existing site.

The slimdown comes about eight months after the company unveiled plans reduce the complexity of its portfolio, streamline its supply chain footprint and create a leaner organization.

“At the end of 2022, Siemens Healthineers announced that due to a variety of external headwinds – including effects from the COVID Pandemic, global inflationary concerns, supply issues, and labor shortages – several measures were being put in place to compensate for the adverse impacts on our company’s business performance,” said the company, which has its U.S. headquarters in Tarrytown, N.Y.

Siemens expects to realize about $320 million (300 million euros) per year in savings starting in 2025 as a result of the steps being taken.

In addition to Flanders, Siemens has over an additional 1,000 employees in New Jersey at its locations in Iselin and Princeton.