Labcorp: New strategic plan won’t mean layoffs – hiring will continue globally

Labcorp: New strategic plan won't mean layoffs – hiring will continue globally

BURLINGTON – Life science giant Labcorp announced months ago plans to review operations and put together a new strategic plan for future growth as well as improving profits. And on Thursday the company announced … that there won’t be any layoffs. In fact, hiring will continue. Globally.

“Today’s announcement has no impact to current jobs or our hiring plans, rather, it reinforces our ability for strong, profitable growth and shareholder returns as we continue to invest in science and innovation that improves health and lives,” Christopher Allman-Bradshaw, director, of Media Relations and PR for Burlington-based Labcorp, told WRAL TechWire.

In fact, a map at Labcorp’s website shows just how many jobs are available – thousands – from North Carolina to New Zealand:

Source: labcorp

Labcorp (NYSE: LH), a $14 billion company in annual revenues with some 67,000 workers, is expanding operations in the Research Triangle Park area and elsewhere as it prepares to roll out initiatives it says are designed to enhance shareholder returns.

The move comes as Labcorp and other life science companies see growing demand due to the global pandemic.

Among the highlights is a massive $2.5 billion share repurchase plan.

Plus: Labcorp aims to launch a corporate dividend in the second quarter of 2022 with a target of “between 15-20% of adjusted earnings.”

It’s also “continuing a commitment to profitable growth through investments in science, innovation and new technologies.”

“We are positioning Labcorp to play an important role in the future of global health care through science and innovation, while delivering strong returns for our shareholders,” said Adam Schechter, chairman and CEO of Labcorp. “Our work since early 2020 through the pandemic is just one example of how our unique capabilities lead to innovation, growth and game-changing solutions. We are well positioned to accelerate our growth in additional areas such as oncology, Alzheimer’s, autoimmune and women’s health, while also investing in other areas, including cell and gene therapy and liquid biopsy.”

The review began in March. A new capital allocation plan features these highlights, as noted in the announcement:

  • Enables the Company to continue to invest in key growth areas such as oncology, Alzheimer’s, autoimmune and women’s health;
  • Fuels growth through innovation by using Labcorp’s unparalleled data and insights to bring scientific advancements—both Labcorp-developed, as well as those of other scientists—to market at scale;
  • Reflects the Board’s confidence in Labcorp’s strong balance sheet and cash flow generation profile; and
  • Demonstrates the Board’s commitment to deploying capital to enhance value for shareholders, patients, providers and pharmaceutical customers worldwide who rely on Labcorp to help make health care decisions that lead to better outcomes.

Labcorp worked with Wall Street firms Goldman Sachs & Co. LLC and Barclays in preparing the strategy.

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Kassie Hoffman
Kassie pens down all the news from the world of politics on ANH.