Dexcom lays off 350 employees, 3% of workforce, in strategic move to enhance long-term success.

Dexcom, a San Diego-based glucose-monitoring company, is laying off 350 employees, or 3% of its workforce, with 196 of those based in San Diego. The layoffs follow the company's recent move to manufacture outside California and eliminate 536 positions in San Diego last year. Dexcom's shares fell about 2% Thursday, despite a 15% revenue growth and a net income of $179.8 million in the second quarter. The company specializes in continuous glucose monitoring systems and aims to expand its services to support customers with pre-diabetes and those who wish to monitor their glucose levels for wellness purposes.

San Diego, CA — Dexcom, a leading developer of continuous glucose monitors (CGM), has announced the layoff of around 350 employees, or 3% of its global workforce, with 196 positions based in San Diego. The announcement comes on the heels of the company's recent decision to shift manufacturing operations to Arizona and reduce its local workforce by 536 positions last year.

The layoffs are part of a strategic reorganization aimed at enhancing the company's operational efficiency and agility. Dexcom's President and COO, Jake Leach, who will become CEO in January, stated, "It was a difficult but important decision around reorganizing our team. We really took a pause and looked at how we operate, and really wanting to make some changes so that we could move faster, be more agile, and meet the needs of this really large growing base of customers and new customers."

The cuts will allow Dexcom to sharpen its focus on research and development (R&D) and scale to meet the needs of larger populations with various diabetes-related health concerns. Leach mentioned that the company is developing sensors for other biomarkers, including ketones, which are produced by the liver and are crucial for managing chronic diseases related to diabetes.

Dexcom's stock fell by about 2% on Thursday, despite the company reporting a 15% revenue growth and a net income of $179.8 million in the second quarter. The company's revenue for the same quarter grew to $1.157 billion, up from $1.004 billion a year ago [2].

The layoffs come as Dexcom continues to expand its product offerings. Recently, the company announced a new 15-day version of its G7 monitor, which will be released in a few months. The new monitor will be wearable for longer periods, up from 10 days, and is part of the company's broader strategy to serve a broader spectrum of users, including prediabetics and those who monitor their glucose levels for wellness purposes.

Despite the recent recalls and FDA inspections, Dexcom remains committed to its mission of providing innovative CGM solutions. The company's strategic partnerships with other healthcare providers, such as Omnipod 5 and NovoPen, further underscore its commitment to building a comprehensive ecosystem for diabetes management.

References:
[1] https://www.sandiegouniontribune.com/2025/08/27/citing-changes-to-its-operating-structure-dexcom-cutting-350-jobs-mostly-in-san-diego/
[2] https://www.latimes.com/business/story/2025-08-28/dexcom-san-diego-lays-off-350-workers-arizona
[3] https://www.ainvest.com/news/dexcom-strategic-momentum-conference-catalysts-fueling-era-cgm-leadership-2508/