Apellis Pharmaceuticals has announced that it will be laying off 25% of its workforce in the third quarter of the year. This will result in roughly 225 employees at the company being laid off at that time.
According to Apellis, these layoffs are part of a restructuring plan that will see it focus on its R&D activities. The company notes that this change will result in $300 million in cost savings through 2024.
Apellis says that these actions will result in it suffering a $9 million and $11 million one-time charge. This will be reported in its Q3 report. The company will also provide an update on its restructuring in that report.
Apellis Joins 2023 Layoffs Trend
2023 has been a year full of layoffs and Apellis joins that movement with its latest announcement. Many companies have been cutting their workforces this year in an effort to reduce spending. That comes alongside increasing interest rates and inflation.
While inflation has started to come under control, it’s possible interest rates might rise even more. That’s a warning that came from Federal Reserve Chairman Jerome Powell during a meeting last week. All of this comes as experts predict a recession is on the horizon.
APLS stock is down slightly as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.