According to SFGate, the San Diego-based medical tech company announced Monday that it is laying off its entire staff. Similar industry reports indicate a complete shuttering of operations.
CUE Health lays off entire staff
Today’s announcement follows a 230-worker cut in early May. A filing by the company stated the latest layoffs will be effective Friday, impacting Cue Health’s entire leadership team and every remaining U.S. employee. “Layoffs have steadily hit Cue’s workforce since January 2023, but the total wind-down is still a major blow, coming less than three years after Cue went public at a $2.3 billion valuation. After turning a profit in 2021, Cue lost $194.1 million in 2022 and $373.5 million in 2023, according to a WARN filing on Monday. “On May 24, 2024, the Company will be issuing final paychecks to all employees,” the filing, written by chief HR officer Allison Blackwell, said. Such filings are required in the event of mass layoffs.
Monday’s announcement may have resulted due to the May 9 Food and Drug Administration notice to Cue that the agency had inspected its San Diego facility and found the company had changed its COVID-19 tests and that they now gave less reliable results. The FDA subsequently put the notice online, warning caregivers and health care providers to stop using the products.
The Agency explicitly stated, “Do not use any Cue Health COVID-19 Tests for Home and OTC Use that you may still have…Dispose of the entire test cartridge in the household trash.”
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