GAITHERSBURG, Md.—As part of a larger review of its Genomics business, informatics specialist Gene Logics announced it would eliminate about 80 positions in the division in early October 2006. The remaining employees will support the existing products and services to ensure operations for current and future customers. Employees in Gene Logics Preclinical and Drug Repositioning Divisions will not be impacted by the move.
In June, Gene Logic announced the revenues of its Genomics Division in Q2 and full year 2006 were significantly than expected and that it was withdrawing issued financial guidance for 2006 and 2007. Furthermore, the division's senior VP and general manager resigned for personal reasons and to pursue other career opportunities.
The company projects the costs associated with severance and outplacement assistance will reach $1.5 million. At the same time, it believes the reduction in salary and benefits will save $8 million.