Sema4 introduced Tuesday the AI-backed genomic and scientific knowledge firm was laying off round 250 staff, about 13% of its workforce, as half of a bigger restructuring.
Combined with earlier layoffs from the primary half of the yr, Sema4 mentioned it has reduce roughly 30% of the roles from its legacy enterprise.
Additionally, founder Eric Schadt is stepping down from his roles as president and chief analysis and growth officer, in addition to his place as director of the corporate. Schadt has been with Sema4 because it was spun out from Mount Sinai Health System in 2017.
The firm can even go away the somatic tumor testing enterprise, closing a scientific laboratory in Branford, Conn., by the top of the yr. It additionally plans to maneuver its hereditary most cancers testing operations from Stamford, Conn., to Gaithersburg, Md., and reorganize its industrial crew.
Sema4 mentioned the restructuring places the corporate on monitor to avoid wasting $50 million in 2022. It now has about 1,600 workers.
“As we look forward, Sema4 will have a dramatically improved cost structure and a more targeted commercial effort supported by an optimized product development strategy. This will enable us to continue to accelerate the use of genomics and leverage clinical data to enhance the standard of care through the more extensive use of precision medicine,” CEO Katherine Stueland mentioned in a press release.
THE LARGER TREND
Alongside the corporate restructuring information, Sema4 additionally posted monetary outcomes for the second quarter ended June 30, 2022. It reported income of $36.2 million in contrast with $47 million within the prior-year interval. Net loss was $85.7 million.
Sema4 went public via a merger with a particular function acquisition firm final yr. The firm had beforehand raised a number of hefty funding rounds, together with a $121 million Series C introduced in July 2020.
Earlier this yr, Sema4 acquired GeneDxwhich provided genomic testing and evaluation for uncommon issues.
Sema4 is the newest in a spate of layoffs hitting the digital well being and well being tech sector. Calm meditation app just lately laid off 20% of its employees, whereas value-based care platform Signify Health cut nearly 500 jobs.
Others asserting layoffs this summer time embrace Pear Therapeutics, Included Health, Olive, Cedar, Ro and Carbon Health.