Those layoffs will see the oncology company reducing its headcount by 200 workers. Doing so will drop its residual operating expenses by about $60 million. Novocure expects to suffer a roughly $7 million charge in the fourth quarter of 2023 as a result of these job cuts.
Asaf Danziger, CEO of Novocure, said the following about the layoffs:
“The initiatives announced today prioritize growth and maintain financial health and flexibility as we position our company for future profitability. These decisions were difficult, yet essential. With a more focused organization, we are confident that these initiatives will bolster Novocure’s position, enabling us to unlock our long-term potential and fulfill our mission.”
The Novocure layoffs come alongside changes to its portfolio prioritization. This will see the company focus on the clinical trials of TRIDENT, KEYNOTE D58 and LUNAR-2. It states that these have the potential for the greatest value in solid tumor treatment.
Novocure Joins Layoffs Trend
Novocure is among a long list of companies announcing layoffs over the last year. These job cuts come alongside a tough economy with high interest rates and increased inflation weighing on businesses. While inflation is cooling, many companies are still seeking ways to reduce costs. Layoffs just happen to be one of the simplest ways to do so.
NVCR stock is down 1% as of Tuesday morning.
Investors looking for more of the hottest stock market stories are in luck!
We have all of the latest market news worth reading about on Tuesday! That includes details on Lion Electric (NYSE:LEV) layoffs, Avidity Biosciences (NASDAQ:RNA) stock is soaring today and more. All of that news is ready to go at the following links!
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On the date of publication, William White did not have (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.