54gene cuts 25% of its already lean workforce amid a fresh change in management

54gene, the Washington-based Nigerian genomic firm, has carried out one other spherical of layoffs. This time, in line with two sources near the occasion, about 10 workers had been affected, representing 25% of its already lean workforce. Per our supply, the corporate now has lower than 30 folks working throughout its features.

54gene, in an e-mail responding to TechCabal’s enquiry, confirmed the brand new layoffs. Part of the e-mail reads: “54gene’s new leadership is focused on prioritising the company’s core mission and positioning the company for future success, and that means certain roles were redefined or eliminated in recent months.”

54gene started 2022 with over 300 staffers, however by the top of the yr, its headcount had dropped to only 39 folks, owing to an virtually dried-out runway. This crunch led to a down spherical funding that marked down the corporate’s valuation from $175 million to $50 million, and the exit of its co-founder and CEO, Abasi Ene-Obong, final October. The board of the corporate put in the corporate’s then basic counsel, Teresia Bost, as interim CEO. Last week, the corporate introduced a full overhaul of its management because it seems to be to boost further funding. Bost has moved into an advisory function, and Ron Chiarello, a San Francisco-based serial entrepreneur, is now the CEO.

According to at least one supply who spoke to TechCabal, your complete advertising and marketing, gross sales, and compliance departments have been disbanded, and their roles are actually shuffled amongst the remaining workers and contracted exterior companies. The firm has maintained that its major focus might be on genomic analysis, which it initially began with. However, a supply claimed that there are at present solely six folks manning this core providing. Genomic analysis has three arms: sequencing, biobank, and genotyping—which means two individuals are working in every sector. 

Following the layoffs, it’s evident that the corporate wants extra arms in its focal space, “else fatigue might force employees to quit without being laid off,” mentioned one other supply conversant in the corporate’s scenario. The firm appears to be in tune with this, as components of its e-mail confirmed that going ahead, “our hiring will align to our core mission.”

The firm additionally claims that obligations to the affected workers had been fulfilled.