Making those changes will cost as much as $100 million, which is quite steep. However, after the cuts, it plans to use between $225 million and $275 million in cash in 2023, a sharp reduction from its $425 million it anticipates possibly using this year. It'll still retain most of its testing products in oncology, rare disease, and women's health. To get to that sum, it'll cut staff and lab space, close down operations in certain international markets, and stop offering certain tests that are driving up its cost of goods sold (COGS). If the cost reductions go as planned, the company could achieve as much as $326 million in annual savings in 2023. On July 18, the company announced a major new restructuring initiative intended to shore up its margins.
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