Abbott cuts 199 jobs amid dwindling demand for COVID tests

Brief Dive: On May 15, Abbott Laboratories notified the Maine Department of Labor that it would be eliminating 199 employees at its COVID-19 test manufacturing facility in Westbrook, Maine. According to a Bloomberg article, the Chicago-based company reduced the "vast majority" of its temporary employees at the facility in February due to a drop in the demand for the tests. The COVID test's yearly sales prediction was cut by Abbott last month from $2 billion to $1.5 billion. Depth Insight: Throughout the pandemic, demand for COVID testing has changed, and Abbott has noticed a fall in demand for its BinaxNOW fast antigen tests. Sales of COVID tests totaled $730 million in the first quarter, down 78% from the same period last year.