BURLINGTON – Life science giant LabCorp will soon be making a variety of cost custs but is not planning a large number of layoffs, the company’s CEO told employees Tuesday.
In a letter – a copy of which was obtained by WRAL News and WRAL TechWire – Adam Schechter said the company is considering:
- Delays in hiring
- Reducing temporary staff
- Limiting hours
“We are not planning large-scale employee reductions,” he added.
The letter came on the same day LabCorp announced FDA authorization to begin sales of an at-home COVID-19 test at $119 each.
Other reductions under consideration include:
- Halting company contributions to employees’ 401K retirement plans
- Delays in merit pay “adjustments”
Schechter described the steps under consideration as “prudent.”
The company employs some 60,000 people worldwide, including thousands across North Carolina. It has major operations across the Triangle.
Schechter said LabCorp’s financials have suffered during the contagion with clients “postponing studies” for drugs and treatments while at the same time there have been reductions in “monitoring patient health and diagnostic testing.”
In response to an inquiry from WRAL TechWire, Patti Kushner, chief communications officer for LabCorp, explained the reasons for the cost reductions.
“What I can tell you is that our commitment and ability to support COVID-19 testing and related patient studies remains unwavering, and we will continue to innovate to advance testing and treatments,” she said.
“Unfortunately, the health crisis is impacting our regular business in the form of clients postponing studies and programs, and lower demand for monitoring patient health and regular diagnostics work.
“We are making decisions to reduce expenses during this health crisis and are taking prudent measures that preserve jobs while ensuring the long-term prospects of our business.”
Kushner reiterated that the company is “not planning large-scale reductions.”
“Our goal is to bring any impacted employees back to work to LabCorp as soon as possible.,” she added. “While we do not know when that will be, we intend for these measures to help us weather this crisis and preserve jobs for the long term.”
Schechter took over as CEO earlier this year.