Cue Health, the once high-flying San [Diego] biotech supplying rapid COVID-19 test kits to the NBA and others, is shutting down this week.
Cue’s closure comes a week after the U.S. Food and Drug Administration warned consumers to throw out any of its COVID-19 test kits because they could give false results. The San Diego firm said it has stopped selling the COVID-19 tests, which was its only fully FDA-approved commercial product.
The local company notified employees on Monday that its entire workforce will be laid off effective Friday, according to Cue’s Worker Adjustment and Retraining Notification Act (WARN) paperwork filed with the state of California.
Earlier this month, Cue laid off half of its workforce, or 230 employees, to cut costs and refocus its pipeline of products.
The latest WARN notice informed the state that Cue is accelerating the end date for these employees from July to Friday. Employees will receive their final paycheck this week, which includes compensation and benefits they would have received through July.