Last updated on November 12th, 2022 at 02:10 am
Madison-based Exact Sciences Corp., a provider of cancer screening and diagnostics, is planning to lay off approximately 250 of its Wisconsin-based employees beginning next week. A total of 350 employees across all locations will be let go by the company.
This reduction in employees, estimated to be about 5% of the total workforce, is being attributed to “the impact of inflation” and “market volatility,” according to a statement from the company.
“…Prioritization of the programs that will have the greatest impact on improving cancer care have resulted in the need to allocate our workforce and resources more closely to our highest priority programs,” reads the statement. “We’ve also taken steps to simplify our organizational structure to improve communication and operational efficiencies.”
A spokesperson for Exact Sciences said Wednesday approximately 200 of the affected Wisconsin employees will stay with the company until the end of the month, while the remaining 50 are expected to be let go Nov. 18.
“Impacted team members will be supported with empathy and respect through the transition and will receive comprehensive severance packages, outplacement services, and the opportunity to apply for one of the 200 open roles across the company,” according to the statement. “We remain deeply committed to Madison and excited to be part of its future for years to come.”
At the start of the year, the company announced plans to make a $350 million investment in its Madison campuses that could create more than 1,300 new jobs. Those plans include eventually building a new Research and Development Center of Excellence at the company’s west-side Madison campus. The company declined to comment today on the status of those plans.
In February 2015, Exact Sciences entered into an agreement with the Wisconsin Economic Development Corp. to earn $9 million in refundable tax credits on the condition that the company spend $26.3 million in capital investments and create 758 jobs within seven years. In December 2021, that agreement was amended to earn an extra $18.5 million in tax credits if the company spent $35 million in capital investments and maintained an additional 1,300 positions over five years.
As of Sept. 30, 2022, Exact Sciences has earned all $9 million of the refundable tax credits, according to a filing with the Securities and Exchange Commission.
Exact Sciences’ generated revenue of $523 million for the third quarter ended Sept. 30, 2022, compared to $456 million for the same period of 2021. However, COVID-19 testing revenue was $10.9 million, a decrease of 64%.