Healius, Thoughtworks lay off workers after Covid pandemic that saw huge profits from PCR testing
Aussie health giant which exploded during the Covid pandemic thanks to PCR tests lays off hundreds of workers as the tech sector also suffers losses
- Health care company slash hundreds of staff
- Aussie business facing tough market conditions
An Aussie health company that exploded during the Covid pandemic thanks to PCR testing has laid off hundreds of workers as the nation moves towards living with the virus.
Healthcare company Healius, which is the pathology arm of Specialist Diagnostic Services, is one of Australia’s leading providers of private medical and lab services.
The company saw huge success during the coronavirus pandemic but with less and less people getting PCR tests, it announced on Monday it was cutting 500 full-time roles due to ‘natural attrition’.
The cuts equate to around 13 per cent of its 6500-strong workforce.
The ASX-listed company offers pathology and imaging services and helped establish and run a number of drive-through Covid-19 PCR testing collection centres.
Healthcare company Healius has scaled back its business as Australia learns to live with coronavirus (stock image pictured)
In 2020, Healius’ first quarter revenue rose to $689.9million from $480.2million, and its earnings almost tripled to $201.9m.
A Healius spokesperson said the 500 job losses were related to both ‘natural attrition and redundancies’ and the cuts meant its workforce had returned to the size it was back in 2019 – before the pandemic started in early 2020.
The spokesperson told news.com.au the jobs being cut were primarily support and back office roles and had been done to turn the company into a ‘more efficient’ operation.
Healius said some staff would be offered severance packages ‘where applicable’.
Healius offers pathology and imaging services and had helped to had establish drive-through Covid-19 PCR testing collection centres
‘Healius also continues to invest in frontline staff at pathology and imaging sites to enable growth and to service the demand for diagnostic testing which is having a resurgence since the end of the pandemic,’ the spokesperson said.
The health company released its interim results last week which showed it had accrued losses of $28.7 million in the first half of this financial year.
Its half-year profit stood at $8.1 million, representing a massive drop from the previous year’s $244 million.
Software firm Thoughtworks also recently announced a round of redundancies, cutting four per cent of its total staff.
The organsiation – which has offices in Sydney, Melbourne and Brisbane – laid off 100 employees last week.
Software firm Thoughtworks laid off 100 employees last week
The lay-offs come amid widespread cut backs on workers as a recession looms amid rising interest rates, spiralling inflation and tough market conditions.
The Reserve Bank of Australia is also expected to again lift the official cash rate this week to a decade high of 3.6 percent.
National accounts figures released last week revealed the Australian economy grew just 0.5 per cent in the final three months of 2022.