2Seventy Bio, the oncology-focused spinout of biotech company Bluebird Bio, announced on Tuesday that it is laying off approximately 40% of its workforce, or about 176 employees. The company is also parting ways with its CEO, Nick Leschly.
The layoffs come just two years after 2Seventy Bio was formed. The company was created in an effort to “sharpen their focus” and improve operations, but it has apparently been struggling to make progress. In addition to the layoffs, 2Seventy Bio is also reducing its investment in a couple of drug candidates, including one that is currently on hold with the Food and Drug Administration.
The layoffs are a major setback for 2Seventy Bio, and it remains to be seen whether the company will be able to turn things around. The company’s cash runway is now extended to 2026, but it will need to find a way to generate revenue soon or it could face bankruptcy.
The layoffs are also a sign of the challenges the biotech industry faces. The industry has been hit hard by rising interest rates and inflation, and many companies are struggling to raise capital. As a result, we are likely to see more layoffs in the biotech industry in the coming months.