BenevolentAI, a UK-headquartered company specialising in AI drug discovery, has made an announcement regarding the termination of around 180 employees as part of a restructuring effort following a comprehensive strategic review. Simultaneously, Nicholas Keher, the Chief Financial Officer (CFO), has stepped down from his position.
As reported by BusinessCloud, BenevolentAI will undertake a strategic reorganisation, streamlining and reorganising operations within its Tech Business Unit and Bio Business Unit. This move is aimed at enhancing efficiency and optimising the company's overall structure.
As per IANS, the reorganisation is expected to yield net cost savings of 45 million pounds. This includes 13 million pounds from reductions in facilities and other operating expenses, along with 32 million pounds in savings from reduced drug program and staff costs.
Without factoring in any new revenues, these savings are projected to extend the company's cash runway until at least July 2025. "Embarking on this process requires difficult decisions, particularly concerning our valued colleagues," CEO Joanna Shields was quoted as saying.
"Our new strategic direction ensures we maximise our portfolio and leverage the knowledge and expertise we have built up in recent years to meet this moment of opportunity for AI in biopharma," she added.
According to the report, the company's strategic plan includes the potential development of a new range of revenue-generating products to leverage the extensive possibilities of AI-driven technologies in the biopharma sector.
In a separate development, Twist Bioscience Corporation, a prominent biotechnology company, has revealed plans to lay off approximately 270 employees, accounting for around 25 per cent of its workforce, in an effort to expedite its path to profitability. By utilising its silicon platform, the company empowers customers by providing them with top-notch synthetic DNA solutions.