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Personalis Cuts 65 Jobs in Continued Cost-Reduction Effort

NEW YORK – Personalis said in a regulatory filing last week that it has approved job cuts of up to 65 employees, approximately 20 percent of its workforce, that are expected to be completed by the end of January 2024.

The company anticipates that this workforce reduction will lead to savings of about $14 million for the 2024 fiscal year. At the same time, it anticipates paying out about $4 million in severance payments and employee benefits, primarily in the fourth quarter of this year. The company had previously announced in January that it had board approval to lay off as much as 30 percent of its workforce, eventually cutting approximately 100 employees.

The move comes days after the firm announced a new partnership with clinical genomics firm Tempus that stands to integrate its tumor-informed minimal residual disease approach into Tempus' larger testing menu and marketing machinery. Personalis' test, dubbed NeXT Personal Dx, involves the use of whole-genome sequencing to create patient-specific liquid biopsy assays to track remittent and recurring cancer.

As part of the deal, Personalis has provided warrants to Tempus to purchase approximately 9.2 million shares of the company’s common stock at an average price of $2 per share. Assuming those warrants are cash exercised and all milestones are met, the partnership will provide approximately $30 million to Personalis exclusive of any payments to Tempus for the fair market value of sales, marketing, and sample logistics services.

In a statement on Monday, Personalis estimated that the new job cuts, along with the funding from the Tempus collaboration, should extend its cash position into 2026.