Discover the 6 companies that announced workforce reduction last month, December
Layoffs
January 4, 2024
Aclaris Therapeutics, Inc., a biopharmaceutical company focusing on drugs for immuno-inflammatory diseases, recently shared updates. They published Phase 2a trial results of ATI-1777, a potential treatment for atopic dermatitis, showing positive outcomes. Following this, Aclaris moved ATI-1777 to a Phase 2b trial, expecting results in January 2024.
Additionally, Aclaris plans to explore ATI-450 for pancreatic and metastatic breast cancer, replacing ATI-2231. They're also reassessing ATI-2138 for ulcerative colitis and speeding up other drug discovery programs.
Unfortunately, to streamline operations and conserve capital, Aclaris is reducing its workforce by about 46%, starting immediately and expected to finish by June 30, 2024. This decision aligns with discontinuing the development of ATI-450 for immuno-inflammatory diseases.
CEO Douglas Manion expressed gratitude to employees and emphasized Aclaris's commitment to financial prudence. The workforce reduction is a strategic move to navigate changes in the development pipeline and ensure sustained progress.
Aclaris Therapeutics, Inc. is a U.S.-based biopharmaceutical company specializing in the development of drug candidates for immuno-inflammatory diseases. Operating in the Therapeutics and Contract Research segments, Aclaris is known for its product ESKATA, a high-concentration hydrogen peroxide topical solution designed for raised seborrheic keratosis. Additionally, Aclaris is actively involved in advancing A-101, a high-concentration hydrogen peroxide formulation undergoing Phase III clinical trials for common warts, and ATI-501 and ATI-502 Janus kinase (JAK) inhibitors in Phase II clinical trials for alopecia areata and other dermatological indications. Aclaris also has a diverse pipeline, including ATI-450 for rheumatoid arthritis, ATI-1777 for atopic dermatitis, and ATI-2138 for psoriasis inflammatory bowel disease. Aclaris provides contract research services and has a collaboration agreement with Rigel Pharmaceuticals, Inc. Aclaris, founded in 2012, is headquartered in Wayne, Pennsylvania.
LiveOne, a renowned music, entertainment, and tech platform, recently revealed plans to trim an extra 25% of its workforce by year-end. The move aims to save an additional $7.5M - $10M, contributing to total savings surpassing $40 million.
The company is concentrating on enhancing profitability by consolidating non-core units and emphasizing AI technologies. LiveOne's CEO, Robert Ellin, highlighted efforts to bolster the balance sheet, repurchase stock, and nurture profitable ventures.
This strategic shift follows a successful $30 million annual cost reduction in the past two years, with a specific focus on optimizing the Audio Division's performance. The decision aligns with LiveOne's commitment to financial strength, cost-effectiveness, and growth in lucrative sectors. Stay tuned for updates on LiveOne's journey as it navigates through these changes.
LiveOne, Inc. is a digital media company specializing in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. Operating under brands like LiveXLive, PodcastOne, and Slacker, LiveOne offers a diverse range of services, including a live music streaming platform, podcasting platform, and integrated membership and advertising streaming music service. Additionally, LiveOne produces original music-related content, curates live music events for online and satellite transmission, and provides digital Internet radio and music services on a white-label basis. LiveOne also engages in the development, manufacturing, and distribution of personalized merchandise and gifts, and offers the LiveOne App, providing users access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content. Formerly known as LiveXLive Media, Inc., LiveOne changed its name to LiveOne, Inc. in October 2021 and is headquartered in Beverly Hills, California.
LiveOne, Inc.'s stock rose 25% in 2 weeks from the time LevelFields.AI sent the alert
Cruise, a self-driving car startup owned by General Motors, recently announced a significant layoff affecting 24% of its workforce, totaling 900 employees. The layoffs primarily impact commercial operations and related corporate functions. This decision follows the dismissal of nine key leaders in response to an October 2 accident involving a Cruise self-driving car.
Cruise, which had 3,800 employees before the layoffs, aims to focus on a fully driverless L4 service and relaunch ride-hailing in one city. The layoffs are attributed to a more deliberate approach to commercialization, with safety as a top priority. Cruise's recent struggles include safety concerns, a halted robotaxi fleet, vehicle recalls, and ongoing investigations by government authorities.
The email sent to employees explains Cruise's shift in focus and restructuring to prioritize the Bolt platform. Departing employees will receive severance packages, including pay until April 8, 2024, subsidized health benefits, RSU vesting, and additional support for those with work visas. Cruise emphasizes its commitment to treating departing employees fairly and offers career support, including a year-long subscription to LinkedIn Premium.
Cruise's leadership acknowledges the challenging nature of the layoffs and expresses gratitude to departing employees for their contributions. Cruise aims to navigate these changes with a focus on long-term success, building trust in autonomous vehicles, and ensuring the safety of its technology.
General Motors Company, founded in 1908 and headquartered in Detroit, Michigan, is a global automotive leader specializing in the design, manufacture, and sale of cars, trucks, crossovers, and automotive parts. Operating through segments such as GM North America, GM International, Cruise, and GM Financial, General Motors markets vehicles under well-known brand names like Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. In addition to selling vehicles to retail and fleet customers, General Motors offers safety and security services, connected services, automotive financing, and operates an online new vehicle store, showcasing its commitment to innovation and customer satisfaction on a worldwide scale.
IGM Biosciences, Inc. recently shared its strategic focus on treating colorectal cancer and autoimmune diseases with its engineered IgM antibodies. IGM Biosciences plans to file for clinical development of IGM-2644, a CD38 x CD3 T cell engager antibody, for treating autoimmune diseases. To reallocate resources, IGMS is stopping hematologic oncology clinical development and reducing its workforce by around 22%.
The decision to cut jobs is linked to the challenging conditions in the industry's capital markets. Despite positive data from halted programs, IGMS aims to concentrate its capital on opportunities with significant near-term value. This shift is anticipated to extend IGMS's cash runway into Q2 2026.
CEO Fred Schwarzer expressed regret for the employees affected by this strategic refocusing and acknowledged their dedication. IGM Biosciences is prioritizing clinical development for aplitabart in colorectal cancer and imvotamab in autoimmune diseases. The decision involves discontinuing certain clinical development activities, including aplitabart in acute myeloid leukemia and IGM-2644 in multiple myeloma.
IGM Biosciences, Inc., a biotechnology company based in Mountain View, California, focuses on the development of antibodies for cancer treatment. With a team of 54 full-time employees, IGM Biosciences utilizes its IgM antibody technology platform to create a diverse pipeline of product candidates, including T cell engagers, receptor cross-linking agonists, and targeted cytokines. Leading the pack are IGM-2323: CD20 x CD3 and Death Receptor 5 (DR5). In addition to CD3 T cell engaging antibodies, the firm conducts research programs targeting TNFrSF members and antibodies designed to enhance cancer immune responses through IL-15 delivery while minimizing systemic toxicity. IGM Biosciences's comprehensive product pipelines encompass CD20 x CD3, CD123 x CD3, CD38 x CD3, solid tumor target x CD3 programs, OX40, and glucocorticoid-induced TNFr-related protein (GITR).
IGM Biosciences, Inc.'s stock rose 37% in 3 weeks from the time LevelFields.AI sent the alert
Shapeways Holdings, Inc., a key player in the digital manufacturing industry, recently made decisions to cut costs. On December 15, 2023, Shapeways Holdings's Board of Directors approved a workforce reduction, part of a broader effort initiated in the third quarter of the same year to lower operating expenses. The measures included a prior reduction in force in October 2023, a decrease in new hires, and a cut in non-essential spending.
This move led to a reduction of about 33 employees, constituting around 24% of the global non-production workforce and roughly 15% of the total global workforce. The estimated one-time cash charges for this are approximately $0.45 million, covering notice periods, severance payments, employee benefits, and related costs. Most of these charges are expected in the fourth quarter of 2023, with the workforce reduction likely completed by the end of the first quarter of 2024.
Overall, these cost-cutting measures, along with the elimination of certain open positions, are anticipated to result in annual cash operating expense savings of around $6.2 million.
Additionally, on December 20, 2023, Shapeways Holdings granted stock options to 14 newly hired non-executive employees under the 2022 New Employee Equity Incentive Plan. The options, covering 25,625 shares of Shapeways' common stock, have an exercise price of $2.09, reflecting the closing price on the day prior to the grant date. The stock options vest over four years, with one-fourth of the shares vesting on the first anniversary of the employee's start date, and the remaining shares vesting monthly over the next three years, contingent on continued employment.
Shapeways, Inc. is a pioneering 3D printing marketplace and community founded in 2008. Based in New York, with additional offices in Eindhoven and Seattle, Shapeways Holdings facilitates the creation, buying, and selling of custom and personalized products across diverse categories such as art, fashion, home products, gadgets, games, jewelry, maker/DIY, and miniatures. Shapeways not only offers a platform for users to showcase and sell their creations globally but also serves as a collaborative space for community members to share ideas and access cutting-edge technology.
Shapeways, Inc.'s stock rose 22% in a week from the time LevelFields.AI sent the alert
Etsy, known for its handmade items, is cutting 225 jobs, about 11% of its workforce, during the holiday season. The CEO, Josh Silverman, explained the move, citing a tough business environment and stagnant sales since 2021. The layoffs aim to address rising costs and refocus on seller growth.
Etsy's marketplace doubled since 2019, but current challenges require significant changes. Etsy expects a 1-2% decline in gross merchandise sales for Q4 but increased revenue and adjusted EBITDA margin. This news caused a 2% drop in Etsy's stock.
Etsy plans to spend $25-30 million on severance and related costs. Layoffs will lead to operational efficiencies and cost savings, with restructuring completed by Q1 2024. The chief marketing officer and chief HR officer will be replaced during this process.
Etsy commits to supporting affected staff through at least Jan. 2, providing severance and benefits. Etsy aims to reignite growth and deliver value to its 7 million sellers worldwide despite the current setbacks.
Etsy, Inc. operates prominent online marketplaces, including Etsy.com and Reverb.com, connecting buyers and sellers across the United States, the United Kingdom, Canada, Australia, France, and Germany. With a diverse range of approximately 66 million items across various retail categories, Etsy provides seller services such as Etsy Payments, Etsy Ads, and Etsy Shipping Labels, facilitating payment processing, advertising, and discounted shipping for sellers. Etsy also offers seller tools like the Shop Manager dashboard for order tracking and inventory management, Targeted Offers for sales and promotions, and educational resources like the Etsy Seller Handbook and Teams platform for building relationships among sellers. Founded in 2005 and headquartered in Brooklyn, New York, Etsy continues to be a leading force in the online marketplace industry.
Etsy, Inc.'s stock rose 4% in a week from the time LevelFields.AI sent the alert
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