GE Healthcare laid off an undisclosed number of employees from its Waukesha, Wis., facility on Friday, according to the Associated Press and The Business Journal of Milwaukee.
Declining to provide specific totals, spokesperson Brian McKaig said the layoffs totaled less than 400 people.
GE’s diagnostic imaging business has been hit hard by the passage of the federal Deficit Reduction Act of 2005, according to McKaig. Passage of the legislation, which caps Medicare reimbursement levels for medical imaging procedures, has limited access to medical imaging procedures.
In a statement, GE reported that governments, insurance companies and state legislatures are taking a number of actions aimed at reducing the amount spent on imaging.
"This directly impacts our customers economically, limiting their ability to reinvest in clinically relevant technology, which has a tremendous impact on patient care and on our business," McKaig said.
Outgoing employees will be provided with outplacement services, including resume assistance, interview training and networking with prospective employers, according to GE.