Dexcom, the San Diego-based company renowned for its diabetes treatment products, is set to lay off 535 workers and relocate a significant portion of its manufacturing operations out of California. This decision was disclosed in a WARN (Worker Adjustment and Retraining Notification) filing with the state on Tuesday, as mandated in cases of mass layoffs.

Among the affected are 406 manufacturing associates, along with dozens of employees in related roles, such as quality assurance inspectors, material handlers, and equipment technicians.

The layoffs will commence on July 26, as indicated in the filing.

Tracy Stragier, a spokesperson for Dexcom, explained in an email to SFGATE that the company is centralizing its U.S. manufacturing operations in Mesa, Arizona, as part of its broader strategy to support global growth. The San Diego facilities will be retooled for “product and process development.”

“This wasn’t a decision we took lightly, and we have set up support to help employees who are affected by the transition,” Stragier wrote. While she did not specify details about severance pay, she mentioned that laid-off workers will have the opportunity to apply for roles in Mesa and receive relocation assistance.

Dexcom established a facility in Mesa in 2017 and expanded it significantly in late 2021. Now, this Phoenix-area city will absorb the California-based manufacturing jobs, with various job listings already posted for Mesa. San Diego will continue to house Dexcom’s corporate headquarters.

The company concluded 2023 with approximately 9,500 full-time employees and reported a profit of $541.5 million for the year. Despite the layoffs, Dexcom is poised for a major product launch this summer: an over-the-counter continuous glucose monitor, which received FDA approval in March.

Since its first continuous glucose monitor hit the market in 2006, Dexcom has experienced tremendous growth, propelled by the burgeoning demand for diabetes treatment solutions. As of Friday, the company boasts a valuation of around $45 billion.

Dexcom’s products have garnered high praise, with a 2021 Esquire article describing their glucose monitors as “lifesaving” and “miraculous.” However, it also highlighted the financial burden these devices impose on many American diabetics, who already face the high cost of insulin.