Biotechnology firm Novacyt has announced plans to cut approximately 40% of its workforce as part of a major restructuring. The molecular diagnostics company, which has a base in Manchester, launched a consultation process on Monday.
The proposed cuts would affect about 90 of its roughly 230 employees globally. The company has not disclosed how many UK-based staff would be impacted.
Novacyt, listed on London's AIM market and in Paris, saw its shares fall in early trading. The company stated that a further announcement will be made regarding the outcome of the consultation process in due course.
The restructuring aims to reduce the company's annual cash burn by up to £4 million once completed, though it will incur a restructuring charge of up to approximately £1 million. The move is part of efforts to focus and streamline operations and cost base, following the successful launch of new products over the past 18 months and the recent acquisition of Southern Cross Diagnostics.
Novacyt has offices in La Vesinet, France; Singapore; the United States; and Canada.
