Cue Health Shutting Down Operations

Original from: genomeweb

Point-of-care diagnostic firm Cue Health is laying off all of its employees and shuttering its operations. 

In a California Worker Adjustment and Retraining Notification filing notice on May 1, the firm said it would lay off 189 employees effective July 1. According to the San Diego Union-Tribune, which first reported the shutdown, Cue Health sent an update to the state on Monday saying their employment will end on May 24, along with all remaining US employees, including company leadership. 

According to the updated filing, 218 total employees will be laid off. 

A LinkedIn post from Rachel Rudo, who identified herself as the senior director of internal and executive communications at Cue Health, confirmed the news, saying that "everyone's time at Cue is coming to an end." 

The firm has had a turbulent year, marked most recently by the receipt of a warning letter from the US Food and Drug Administration last week recommending against the use of its flagship COVID-19 tests for point-of-care and at-home settings. The agency also denied Cue Health's request for de novo authorization of its molecular point-of-care test for respiratory syncytial virus in April.

Also last week, former CEO, President, and Chairman Ayub Khattak stepped down from the company's board of directors after resigning from his position at Cue Health in March. Fellow board member Rishi Reddy, head of venture and growth equity investing at Tarsadia Investments, stepped down at the same time. Tarsadia is one of Cue Health's biggest shareholders and late last year expressed its concerns about the company's strategic direction in a public letter. 

Earlier this month, the firm announced it would lay off 49 percent of its workforce in a cost-reduction plan, one of multiple cost-reduction plans by the company that involved layoffs since January 2023. 

Cue Health did not respond to a request for comment on deadline.

In early morning trading on the Nasdaq on Thursday, shares of Cue Health were down 13 percent at $.09 per share. The company went public in September 2021 and saw its shares close its first day of trading at $20 per share. 

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Source: Cue Health Shutting Down Operations