ANN ARBOR, MI — A biotechnology company in Ann Arbor announced last week that it will permanently lay off 110 employees on Aug. 6.

Progenity, based in San Diego, announced on June 2 that it will be closing its genetic testing laboratory portion of its Ann Arbor location as a cost-saving measure. As a result, the laboratory will no longer offer its Preparent Carrier Test, Innatal Prenatal Screen, Riscover Hereditary Cancer Test or its Resura Prenatal Test.

Progenity is known for its genetic testing.

The layoffs are part of a wider workforce reduction that will result in 374 employees across Progenity and Avero, a Progenity affiliate, leaving the companies. The employees make up roughly 56 percent of the company’s workforce, according to Progenity.

“It is especially difficult to say goodbye to valued team members. We are grateful for their dedication and support over these past years,” said Harry Stylli, chairman of Progenity’s board of directors, in a company statement. “We also appreciate the healthcare providers, patients and other stakeholders that have placed trust in us at critical life moments for more than a decade.”

Progenity reached a $49 million settlement with the U.S. government in July 2020 after it was accused of fraudulently billing federal healthcare programs for prenatal tests and providing kickbacks to physicians.

Progenity declined to provide additional comment.

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