Genetics firm Invitae, with Morrisville facility, to lay off more than 1,000 workers

MORRISVILLE – Invitae will initiate a strategic realignment of its business operations along with implement cost reduction programs, including the layoffs of more than 1,000 employees, the company disclosed in an SEC filing this week.

The genetics company announced an investment of $114.6 million in a Triangle facility in 2020 that was expected to create 374 jobs in the region, under the terms of a deal struck by the company with the State of North Carolina.

In April of 2021, as noted in a report published by WRAL TechWire, the company selected The Stitch in Morrisville for its facility, and had 38 employees based in North Carolina.

At the time, according to the report, the company employed more than 2,100 globally.

But the status of those positions may now be unknown.

Invitae Corporation to invest $114.6M, create 374 jobs in Morrisville

Layoffs coming

“The realignment plan will result in a reduction of more than 1,000 employees,” the company’s latest SEC filing reads. “As part of the realignment plan, the Company intends to streamline its international operations by focusing its international operations to fewer than a dozen countries and exiting certain territories and countries where the Company’s business is less developed.”

The board of directors for the company approved the plan on July 16, the filing notes. And the company announced the plan in a statement on Monday.

“The Company plans to streamline its product portfolio to focus on its core testing business and programs that drive near-term cost of goods sold reductions, with the goals of accelerating the company’s path to positive operating cash flow and completing its genome management platform,” the filing notes.

By taking these measures, the company expects to save approximately $326 million, realized by 2023, Invitae noted in the statement, and that the realignment plan for the company will be completed by the end of June 2023.

Along with the implementation of the strategic business realignment, the company has also made a leadership change, with the firm’s COO, Kenneth D. Knight, elevated to the CEO role as Dr. Sean George will step down from the chief executive role though will still remain on the company’s board of directors.

“First, our refocused and realigned platform will allocate resources where they should be: at our core, we are a growth-oriented genomic testing platform,” said Knight in a statement. “Second, aggressive actions to substantially reduce spend over the coming 12-18 months will improve operating leverage and align Invitae’s cost structure with current market dynamics and the broader economy.”

“We do not have any further details to share,” a spokesperson for the company told WRAL TechWire on Tuesday.