Cytori restructures, cuts third of work force
Cytori Therapeutics, a San Diego-based developer of cell therapies based on autologous adipose-derived regenerative cells (ADRCs), plans to restructure its operations and reduce costs.
The company will focus on delivering value by limiting its activities to expanding the U.S. clinical pipeline, building on current governmental and corporate partnerships and ensuring its commercial efforts are cash-flow positive immediately. The company has restructured senior management and the global commercial and development teams, consolidated operations and reduced duplicative activities and unnecessary expenses.
As a part of the restructuring effort, Clyde Shores, Cytori's executive vice president of marketing and sales, resigned and a number of other employees have left or will be leaving the company after a brief transition period. After the transition period, the company will have reduced the number of full-time employees from a peak of 119 earlier this year to approximately 77. The company will incur a one-time restructuring charge of approximately $500,000. The consolidation and cost-reduction initiatives over the past several months are expected to lower operating expenses by more than $8 million on an annualized basis.