Sema4 announced on Tuesday that the AI-backed genomics and clinical data company was laying off about 250 workers, or about 13% of its workforce, as part of a broader restructuring.
Combined with earlier first-half layoffs, Sema4 said it cut about 30% of jobs from its legacy business.
Additionally, founder Eric Schadt is stepping down as president and director of research and development, as well as his position as director of the company. Schadt has worked at Sema4 for was spun off from Mount Sinai Health System in 2017.
The company will also exit the somatic tumor testing business, closing a clinical laboratory in Branford, Conn., by the end of the year. It also plans to move its hereditary cancer screening operations from Stamford, Connecticut, to Gaithersburg, Maryland, and revamp its business team.
Sema4 said the restructuring puts the company on track to save $50 million in 2022. It now has about 1,600 employees.
“Going forward, Sema4 will have a significantly improved cost structure and a more focused sales effort supported by an optimized product development strategy. This will allow us to continue to accelerate the use of genomics and leverage clinical data to improve the standard of care. through the wider use of precision medicine,” CEO Katherine Stueland said in a statement.
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Along with the company restructuring news, Sema4 also released financial results for the second quarter ended June 30, 2022. It posted revenue of $36.2 million, compared to $47 million at the period of the previous year. The net loss was $85.7 million.
Sema4 went public by merger with a special purpose acquisition company last year. The company had previously raised several significant rounds of funding, including a $121 million Series C announced in July 2020.
Earlier this year, Sema4 acquired GeneDx, which offered genomic testing and analysis for rare diseases.
Sema4 is the latest in a series of layoffs in the digital health and health technology sector. Calm meditation app recently laid off 20% of its staff, while value-based healthcare platform Signify Health cut nearly 500 jobs.
Others announcing layoffs this summer include Pear Therapeutic, Inclusive Health, Olive, Cedar, Ro and Carbon Health.