Sema4 announced Tuesday the AI-backed genomic and clinical data company was laying off around 250 workers, about 13% of its workforce, as part of a larger restructuring.
Combined with earlier layoffs from the first half of the year, Sema4 said it has cut approximately 30% of the jobs from its legacy business.
Additionally, founder Eric Schadt is stepping down from his roles as president and chief research and development officer, as well as his position as director of the company. Schadt has been with Sema4 since it was spun out from Mount Sinai Health System in 2017.
The company will also leave the somatic tumor testing business, closing a clinical laboratory in Branford, Conn., by the end of the year. It also plans to move its hereditary cancer testing operations from Stamford, Conn., to Gaithersburg, Md., and reorganize its commercial team.
Sema4 said the restructuring puts the company on track to save $50 million in 2022. It now has about 1,600 employees.
“As we look forward, Sema4 will have a dramatically improved cost structure and a more targeted commercial effort supported by an optimized product development strategy. This will enable us to continue to accelerate the use of genomics and leverage clinical data to enhance the standard of care through the more extensive use of precision medicine,” CEO Katherine Stueland said in a statement.
THE LARGER TREND
Alongside the company restructuring news, Sema4 also posted financial results for the second quarter ended June 30, 2022. It reported revenue of $36.2 million compared with $47 million in the prior-year period. Net loss was $85.7 million.
Sema4 went public through a merger with a special purpose acquisition company last year. The company had previously raised several hefty funding rounds, including a $121 million Series C announced in July 2020.
Earlier this year, Sema4 acquired GeneDx, which offered genomic testing and analysis for rare disorders.
Sema4 is the latest in a spate of layoffs hitting the digital health and health tech sector. Meditation app Calm recently laid off 20% of its staff, while value-based care platform Signify Health cut nearly 500 jobs.