In a strategy intended to cut costs, cancer genomics company Personalis has approved a layoff of up to 65 employees, approximately 20% of the Fremont, CA-based company’s workforce.
While the company anticipates that the layoffs will result in approximately $4 million in severance payments and employee benefits, mostly in the fourth quarter of 2023, it also noted that the layoff will result in savings of approximately $14 million for fiscal year 2024.
Personalis anticipates that the job cuts, along with funding from a new collaboration with clinical genomics company Tempus, should extend the company’s cash position into 2026.
Under the agreement with Tempus, Personalis’ Next Personal Dx test will be integrated into Tempus’ more extensive testing menu, with the two companies jointly commercializing the test. Personalis will provide Tempus with warrants to purchase up to approximately 9.2 million shares of Personalis' common stock over the next 24 months at an average price of $2 per share.
If warrants are cash exercised and all milestones met, the partnership would provide approximately $30 million to Personalis minus payments to Tempus for the fair market value of sales, marketing, and sample logistics services.