Sema4 announced Tuesday that the AI-powered clinical and genomic data company will lay off about 250 workers, or about 13% of its workforce, as part of a larger restructuring.
Combined with previous layoffs from the first half of the year, Sema4 says it has cut about 30% of jobs from its old business.
In addition, founder Eric Schadt will step down from his role as president and director of research and development as well as his position as director of the company. Schadt has been with Sema4 ever since was spun off from the Mount Sinai Health System in 2017.
The company will also exit the somatic tumor testing business, closing a clinical lab in Branford, Conn., later this year. It also plans to move genetic cancer testing operations from Stamford, Conn., to Gaithersburg, Md., and reorganize its commercial team.
Sema4 said the restructuring will save the company 50 million USD by 2022. The company currently has about 1,600 employees.
“As we expect, Sema4 will feature a significantly improved cost structure and a more targeted commercial effort supported by an optimized product development strategy. This will enable us to do so. continues to accelerate the use of genomics and leverage clinical data to raise the standard of care through broader use of precision medicines,” Chief Executive Officer Katherine Stueland said in a statement.
TREND TO BIGGER
Along with news of the company restructuring, Sema4 also released financial results for the second quarter ended June 30, 2022. It reported revenue of $36.2 million versus $47 million. in the same period of the previous year. Net loss of $85.7 million.
Sema4 debuts through merger with a special purpose acquisition company last year. The company has previously raised several huge funding rounds, including $121 million Series C announced in July 2020.
Earlier this year, Sema4 acquired GeneDxprovides genomic testing and analysis for rare disorders.
Sema4 is the latest in a series of layoffs hitting the digital health and medical technology sectors. Calm meditation app recently laid off 20% of employeeswhile Signify Health value-based care platform cut nearly 500 jobs.
Others announcing layoffs this summer include Le Therapy, Inclusion Health, Olive, Cedar, Ro and Carbon Health.
