In recent news, Cue Health has made the sudden decision to lay off all of its employees and cease operations as of Friday, May 24. The company, known for its at-home test kits, gained recognition during the Covid-19 pandemic for producing one of the only molecular at-home tests for the virus. However, Cue has been struggling financially for months and is now facing insolvency.
The decision to shut down comes shortly after the FDA issued a warning advising consumers not to use Cue’s only FDA-authorized product, a Covid-19 test kit. Initially, Cue had informed 49% of its employees on May 1 that they would be laid off effective July 1. However, in a notice filed with California state regulators on May 20, the company’s chief human resources officer stated that due to the rapidly changing situation, all U.S. employees who had not yet received termination notices would be receiving one.
According to the notice, all employees will receive their final paychecks on May 24. This development marks a significant shift from Cue’s previous plans and reflects the challenges the company has faced in staying afloat. Despite its success during the pandemic, Cue has struggled financially due to intense competition and regulatory hurdles. The company’s decision to shut down is a stark reminder of the financial pressures faced by businesses during these challenging times.
