Mesa Laboratories said it will cut annualized operating costs by about $9.3 million through a restructuring plan, while reinvesting about $4.3 million back into the business, for a net annualized cost reduction of roughly $5.0 million.
The company said the plan will eliminate about 40 positions, or about 6% of its workforce. Most of the reductions are concentrated in clinical genomics, with additional cuts in corporate functions. Mesa also plans to reduce its San Diego facility footprint and exit its Hamburg, Germany facility when its lease expires in February 2027.
Mesa said the restructuring will generate total pre-tax charges of about $2.6 million to $3.4 million, mostly in the second half of fiscal 2027. Those charges are expected to include employee-related costs of about $2.3 million to $3.0 million, partially offset by an expected non-cash reversal of about $0.3 million of previously recognized stock-based compensation expense, plus other exit costs of about $0.3 million to $0.4 million. Cash expenditures tied to the plan are expected to total about $2.9 million to $3.7 million, with most of that flowing out over the next 12 months.
The company said the savings plan will be fully reflected in its annualized cost structure by the end of fiscal 2028. Mesa also said the restructuring will reduce revenue in clinical genomics, but expects that business’s gross profit percentage to improve as it exits its lowest-margin revenue.
Mesa said it will add commercial and technical resources in Asia, including a leader for Asia outside of China, and will add business development capacity in calibration solutions, commercial resources primarily in Asia, and key corporate positions.
The company said the restructuring actions began after board approval and are expected to be substantially complete by the end of fiscal 2027, except for certain international employee exits tied to protected notice periods, which are expected to finish in the first half of fiscal 2028. Mesa said it will report second-quarter fiscal 2027 results on Nov. 9, 2026, along with company-level fiscal 2027 guidance that reflects the savings plan and the expected decline in clinical genomics revenue. Following these announcements, the company's shares moved 0.44%, and are now trading at a price of $128.07. For more information, read the company's full 8-K submission here.
