Complete Genomics to restructure, cut 55 jobs
Complete Genomics, a whole human genome sequencing company based in Mountain View, Calif., is taking steps to reduce cash consumption and has engaged Jefferies & Company to assist it in exploring strategic alternatives.
The company also plans to focus on development of clinical applications for its whole human genome sequencing service, while continuing to provide high-quality genomes to research customers.
"Leading hospitals, health care systems and physicians are beginning to adopt whole human genome sequencing for clinical applications," said Dr. Clifford Reid, chairman, president and CEO, Complete Genomics, adding that it “should position us well to capture this emerging opportunity."
Complete Genomics will maintain its current monthly capacity of approximately 1,000 genomes at 40x coverage or 500 genomes at 80x coverage. The company expects to delay capacity expansion beyond those numbers until demand for clinical-grade genomes supports expansion. Approximately 55 employees will be eliminated due to the delay in expanding capacity.
The employee reduction is expected to be substantially completed during the current quarter ending June 30, 2012. Restructuring and related costs incurred with the plan are estimated at $1.5 million, most of which will be cash expenditures. These costs are comprised of one-time termination benefits for employees whose positions are being eliminated and should be recorded this quarter.