In a filing with the U.S. Securities and Exchange Commission (SEC), Cue Health said that it intends to cut 230 jobs, 49% of its workforce, as part of a cost-reduction plan the firm is implementing.
The San Diego-based firm said in the SEC form that the aim of the plan is to narrow the company's focus on its core technology, and is "intended to reduce the Company's cost structure and improve its operational efficiency beyond the expected cost savings of the cost reduction plans announced on January 5, 2023, April 28, 2023, January 5, 2024, and January 25, 2024."
The previous cost-reduction plans listed resulted in a total of more than 800 jobs being eliminated beginning in 2023.
Cue grew quickly during the pandemic; however, its revenue from COVID-19 sales has declined. While Cue was the first company to receive a traditional authorization from the U.S. Food and Drug Administration (FDA) for its at-home COVID-19 test rather than the emergency use authorization (EUA) pathway, the FDA has not approved the firm's request for de novo authorization of its at-home respiratory syncytial virus (RSV) test. Earlier this year, the FDA declined to grant an EUA for Cue's combination COVID-19 and influenza A/B test.
Cue's FDA-approved tests include the COVID-19 test and an mpox test approved through the EUA pathway in March 2023. Cue is also facing leadership changes. CEO Ayub Khattak resigned in March, and chief financial officer Aasim Javed recently announced his May resignation.
