Genetic testing company Invitae Corp. will cut 1,000 jobs — about a third of its 2,900 employees — as its CEO steps down and co-founder Randy Scott returns as chairman.
The San Francisco-based company (NASDAQ: NVTA), which has used acquisitions and partnerships with the drug industry to expand its services and grow genetic tests’ ability to spot diseases in people, said the restructuring will shed $326 million in annual costs and will be completed by mid-2023.
Invitae expects to take a $75 million to $100 million charge related to the restructuring plus a non-cash charge that it said in a Securities and Exchange Commission filing it is not able to estimate.
As part of the plan, Invitae co-founder and CEO and executive chairman, Randy Scott, is returning to the company as chairman, and COO Ken Knight will succeed Sean George as CEO.
The company, which at the stock market’s close Monday was down 18 cents to $2.67 per share, lost another 27 cents in pre-market trading Tuesday.