LAB - Standard BioTools Announces Operational Restructuring Plan to Drive Long-Term Profitable Growth | Benzinga
- Company expects to achieve $45-$50 million in annualized operating expense savings in fiscal 2025
- Management to discuss first quarter 2024 financial results, restructuring and strategic initiatives on May 8, 2024 conference call
SOUTH SAN FRANCISCO, Calif., April 25, 2024 (GLOBE NEWSWIRE) -- Standard BioTools Inc. ("Standard BioTools" or the "Company") (NASDAQ:LAB) today announced that it has initiated a restructuring plan to improve operational efficiency and reduce operating costs, while supporting the execution of the Company's long-term strategic plan.
"Following the completion of the SomaLogic merger, our management team has conducted a comprehensive review of our business as we continue to execute our strategic growth plan. Today we are taking critical and proactive steps to optimize our cost structure, which reflects the Company's commitment to accelerate our path to profitability and achieve our long-term financial targets," said Michael Egholm, PhD, President and CEO of Standard BioTools. "We will continue to focus on disciplined expense management while staying true to our mission of becoming a diversified leader in life sciences tools and empowering our customers to do better world-changing research."
The restructuring plan is expected to generate annualized operating expense savings of $45 million to $50 million in fiscal 2025, with the majority of the cost takeout to occur in the second half of 2024. The plan focuses on two core areas:
- Workforce Reduction: The Company has implemented a reduction of approximately 10% of its total workforce to better align the Company's personnel costs with the current needs of its business. This includes the elimination of certain senior management positions following the closing of the SomaLogic merger. The Company expects expenses related to these reductions in the range of $10 million to $11 million, consisting primarily of cash severance and termination benefits and related costs, and includes approximately $4 million of non-cash expenses related to vesting of share-based awards.
- Streamlined Operational Expenditures: Includes reductions in overall selling, general and administrative (SG&A) expenses, the closure of the Company's R&D facility in San Diego, as well as savings related to a more prioritized R&D strategy.
Egholm continued, "We value ...