With third-quarter sales falling shy of Wall Street's expectations and looming budget cuts at the NIH feeding fears that researchers will have less money to spend on new DNA sequencing tech, Illumina said today that it will begin restructuring the company. The restructuring will include layoffs, though Illumina did not spell out how many of its 2,100 workers face pink slips.
Overall revenue slipped only 1%, Illumina reported, but its profits plunged 43%, dropping to a little more than $20 million. The news of the prospective layoffs couldn't be a big surprise to Illumina's workforce. The company announced this month that it will stop issuing guidance to investors as researchers continued to ponder the likelihood of budget cuts at the NIH, which funds billions of dollars in research work.
"We view the move as likely prudent, although the expectation points to a bearish outlook on HiSeq," noted JP Morgan's Tycho Peterson, according to a report from Xconomy. HiSeq is Illumina's lead product.