News Summary
Dexcom, a leader in diabetes management technology, has announced layoffs affecting around 350 employees, predominantly at its San Diego headquarters. The layoffs represent 3% of its global workforce, with a focus on operations and manufacturing roles. This decision supports a strategy to emphasize research and development, led by new CEO Jake Leach starting in January. With ongoing innovations in glucose monitoring systems, Dexcom remains committed to improving healthcare outcomes despite the workforce reductions.
San Diego – Dexcom, a leading company in diabetes management technology, has announced it will lay off approximately 350 employees, which represents around 3% of its global workforce. The majority of the layoffs—196 positions—are set to take place at the company’s headquarters in San Diego, primarily impacting operations and manufacturing.
The decision comes as part of a broader strategy to refocus on research and development, allowing the company to enhance its operational scalability. Jake Leach, who is currently the president and chief operating officer, is set to take over as CEO in January, underscoring a leadership shift during this transitional phase.
The impact of these layoffs is particularly significant in San Diego, where 134 of the affected roles are within operations and manufacturing. Dexcom is also making cuts at other U.S. locations, with only a minimal number of layoffs happening internationally. The company is providing support to affected employees in their search for new job opportunities.
Founded in 1999, Dexcom is known for its innovations in continuous glucose monitoring systems, primarily designed for patients with Type 1 diabetes. The company also caters to Type 2 diabetes patients and those prediabetic, effectively impacting a substantial segment of the population in need of glucose monitoring solutions.
Dexcom currently employs around 11,000 full-time workers, with approximately 2,000 based in San Diego. The ongoing layoffs are part of a long-term growth strategy that had started to unfold earlier this year when Dexcom laid off 536 workers amid a shift to move manufacturing operations to Arizona. Such adjustments come against the backdrop of a broader industry trend, with major medical technology companies, including Medtronic and Abbott, also announcing layoffs due to economic pressures.
Despite these challenges, Dexcom is working on innovative projects, including a new version of its G7 continuous glucose monitor that features an extended use period of 15 days, more than the previous 10-day variant. Further developments include sensors for other biomarkers, such as ketones, crucial for managing chronic diseases associated with diabetes.
The company launched an over-the-counter product named Stelo, which allows users to monitor their glucose levels concerning their diet and lifestyle choices. With a significant market opportunity in glucose monitoring—particularly among populations with varying levels of diabetes—Dexcom aims to reach more patients. Presently, only about 60% of Type 1 diabetes patients utilize continuous glucose monitors, while around half of the 2.4 million patients with Type 2 diabetes who would benefit from intensive insulin therapy currently do so.
The prediabetes market is particularly expansive, with nearly 100 million people in the U.S. affected, but only 20% have been diagnosed, indicating a substantial opportunity for growth in this area. Despite experiencing operational challenges due to recalls this year related to alarm issues with its monitors, Dexcom has been collaborating with the FDA to address these concerns and improve their manufacturing processes.
In its most recent financial report, Dexcom reported a net income of $179.8 million and revenue of $1.157 billion for the second quarter, reflecting a 15% increase compared to the previous year. The layoffs announcement came after market hours on Wednesday, coinciding with a slight increase in Dexcom’s stock price, which closed at $76.38, up by 26 cents.
As Dexcom aims to steer towards a more research-focused path, these layoffs signify a shift in strategy designed to scale its operations effectively while responding to the increasing demands of a growing customer base.
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- Times of San Diego
- Wikipedia: Main Page
- San Diego Union Tribune
- Google Search: Dexcom layoffs
- Fierce Biotech
- Encyclopedia Britannica: Dexcom
- MedTech Dive
- Google News: Dexcom FDA warning letter
- MD+DI Online
- Google Scholar: Dexcom manufacturing
- SFGate
- Google Search: Dexcom diabetes management
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SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
