GE Healthcare to lay off up to 40 in Madison

Mike Ivey  —  7/18/2008 2:23 pm

Weakness in the U.S. healthcare market is being blamed for a round of layoffs at the Madison operations at GE Healthcare.

GE Healthcare officials would not release details on the layoffs, but sources told The Capital Times that 35 to 40 employees were being let go.

Sources said employees were offered buyouts last month but not enough workers took them, forcing the layoffs. Employees were notified of the cuts in a company-wide meeting Thursday.

The company has about 900 workers in Dane County at various locations, including its main facility at 3030 Ohmeda Drive just east of Interstate 90.

"This has been an extremely tough year for GE Healthcare," said Brian McKaig, GE Healthcare director of public relations, based in Waukesha, in a statement Friday.

"There is an overall weakness in the U.S. healthcare market, with governments, insurance companies and state legislatures taking a number of actions aimed at reducing the amount spent on hospital procedures. In addition, since 2007, the U.S. market for anesthesia equipment has experienced a slowdown.

"Consequently there will be a limited number of GE Healthcare production job losses in the Madison area. This is a difficult but necessary action to remain competitive, reduce costs, and adjust our production capacity to market demands."

Datex-Ohmeda -- known in the 1960s and 1970s as Ohio Medical -- became part of GE in 2003, when GE Healthcare bought its Finnish parent company, Instrumentarium, for $2 billion.

GE Healthcare has also been cutting jobs statewide. Earlier this year it cut several hundred jobs in the Milwaukee area. Prior those cuts, the company had employed about 3,000 workers in Waukesha County and 7,000 workers statewide.

It's also been a tough year for GE stock. Shares are down nearly 29 percent this year.

Mike Ivey  —  7/18/2008 2:23 pm