by
Gus Iversen, Editor in Chief | July 30, 2020
In government filings obtained by HealthCare Business News, imaging component manufacturer Varex Imaging Corporation announces plans to reduce operating costs by laying off approximately 94 employees by the end of the year.
The Form 8K SEC filing indicates that the layoffs are meant to address the impact of the COVID-19 pandemic, and that "nearly all" of the employees who will be affected are based in the U.S. It also specifies that these layoffs are in addition to the previously disclosed workforce reductions relating to the closure of the company's Santa Clara, California, facility.
Varex is a leading manufacturer of X-ray imaging components, including X-ray tubes, digital detectors and other image processing solutions, which imaging equipment manufacturers incorporate into their systems. The company is headquartered in Salt Lake City, Utah, and employs approximately 2,000 people located at manufacturing and service center sites in North America, Europe, and Asia.
X-ray imaging exams and elective procedures have seen dramatic reductions in utilization due to the coronavirus pandemic. Researchers at University Hospitals Cleveland Medical Center/Case Western Reserve in Ohio recently studied imaging utilization across eight weeks and determined that scans had
dropped by over 50%.
According to the Form 8K filing, dated July 29, Varex estimates that it will incur approximately $2.5 to $3.5 million of cash expenditures in connection with the newly announced reduction in workforce.
