PacBio Announces Job Cuts and Cost Reductions Over NIH Funding Changes and Tariffs

PacBio took major cost-saving steps, including firing 120 workers because NIH funding rules and new tariffs affect their business model. PacBio announced their job cuts in a public statement, which they revealed recently.

The company plans to end regular positions for 80 present staff members and reject hiring for another 40 vacant positions. PacBio adjusted its workforce to save $45-50 million in operating expenses annually by the end of 2018, which is less than the $270-280 million range they previously expected.

PacBio becomes the first life sciences company to respond publicly to NIH’s February 7 budget cut decision for research institution overhead costs. Research organizations need these funds for their labs and staff, plus equipment and buildings needed for scientific work.

PacBio kept its planned annual revenue estimates of $155-170 million during these changes. The preliminary numbers from the first quarter showed $36.9 million in revenue before the analysts expected $33.5 million per LSEG findings.

The broader context includes recent developments in federal health funding:

• A U.S. judge blocked the Trump administration’s attempt to cut NIH funding last month
• Universities have warned that funding reductions would lead to layoffs, lab closures, and curtailed scientific research
• On March 27, HHS Secretary Robert F. Kennedy Jr. announced plans to eliminate 1,200 NIH jobs as part of efforts to reshape federal public health agencies.