ZymoGenetics reduces workforce by 32%

US-based ZymoGenetics has reduced its workforce by approximately 32%, or 161 employees, as part of a corporate restructuring.

ZymoGenetics said that it is reorganizing its operations to focus resources on assets with the potential to generate the greatest value for shareholders. Headcount has been reduced in most areas of the company, with the greatest impact coming in research, manufacturing and other development-related functions, as well as administrative departments.

The company expects to realize an annual reduction in operating expenses of approximately $30 million beginning in the third quarter as a result of these actions.

ZymoGenetics said that it will continue to build the market for its approved product, Recothrom Thrombin, topical (recombinant), while pursuing the research, development and commercialization of novel biologic therapeutics. The company will discontinue ongoing research activities in oncology and focus future research efforts in immunology, its core strength.

Douglas Williams, CEO of ZymoGenetics, said: We’re taking steps to reduce our costs, align our spending with our highest corporate priorities and conserve our financial resources. While it is very difficult taking these actions, they are necessary given challenging market conditions and the changing focus of our business plan. Going forward, we believe that ZymoGenetics will be a stronger, more sustainable company with substantially reduced dependence on the capital markets for funding.