Potrero Hill genetic testing firm Invitae will eliminate 238 positions in San Francisco, marking its second major workforce reduction in two years.
The company disclosed the 15% staff cut Wednesday through a Securities and Exchange Commission filing and a WARN notice sent to city officials. With its stock price down more than 98% over three years and closing at $0.67 Tuesday, Invitae continues grappling with mounting financial losses.
Departures will stretch from February 12 through May 6, 2024, according to the WARN notice. The eliminated roles span designers, marketers, software engineers, recruiters, plus several directors and managers.
Founded 13 years ago, Invitae employed roughly 1,700 people at the close of 2022. The company spent recent years acquiring health tech firms, including the $325 million purchase of Palo Alto-based Ciitizen in 2021. That subsidiary will now be spun off, the company announced Wednesday.
Financial troubles have deepened considerably. Revenue for July through September fell compared to the same quarter last year, while net losses hit $1.3 billion for the first nine months of 2023.
CEO Ken Knight framed the layoffs as operational necessity. “The actions announced today will assist in streamlining our operations and reducing our cash burn,” he wrote in a press release. Knight acknowledged the workforce reduction while committing to smooth transitions for affected employees and customers.
The SEC filing made no mention of office space reductions. Invitae did not respond to media inquiries about the layoffs.
