Benzinga | Jul 9, 2021 02:21PM EDT

Abbott Lays Off Around 400 Employees As COVID-19 Test Demand Evaporates

* Abbott Laboratories (NYSE:ABT) has begun laying off hundreds of workers at its diagnostic plants a month after it slashed its earnings forecasts for the remainder of 2021 amid diminishing demand for COVID tests as vaccination picks up.

* According to a report from the ABC television station WMTW in Portland, Abbott is letting go 400 full-time employees at its locations in Westbrook and Scarborough, focused on the production of rapid antigen tests.

* The Company is cutting 300 jobs at its Westbrook manufacturing facility. Another 100 workers will lose jobs at Abbott's Scarborough plant, WMTW-TV reported.

* The firm's BinaxNOW COVID-19 Ag Card was a heavy driver for early testing sales.

* COVID-19 testing sales declined to $2.2 billion in Q1 of 2021 from $2.4 billion in Q4 of 2020.

* However, demand dried up faster than expected. The Company said in early June after the Centers for Disease Control and Prevention said that fully vaccinated people could skip the swabs before re-entering daily life or traveling.

* In addition, based on the performance of vaccines from Moderna Inc (NASDAQ:MRNA), Pfizer Inc (NYSE:PFE), BioNTech SE (NASDAQ:BNTX), and Johnson & Johnson (NYSE:JNJ), the CDC said people could forgo testing even after being exposed to an asymptomatic person with COVID-19 in certain situations.

* Price Action: ABT shares are up 0.12% at $119.40 during the market session on the last check Friday.