The cancer diagnostics company Grail announced Tuesday that it plans to cut 30% of its workforce to reduce expenses, just weeks after being spun out of Illumina as an independent company.
In addition to cutting 350 jobs, Grail also said it would cancel plans to hire 150 positions. A company spokesperson said the company is refocusing on its multi-cancer test, called Galleri, which is undergoing clinical trials in a bid to win full regulatory approval.
The announcement came as part of Grail’s first-ever quarterly earnings report, in which the company said the cuts will give it enough cash to keep operating into 2028. The company’s tough financial position quickly became clear after being divested by deep-pocketed Illumina in June.
“It is important to note that we do not expect that the restructuring will impact our previously communicated FDA regulatory submission timelines,” the company said in the announcement.
Grail helped pioneer tests that detect fragments of tumor DNA, and the tantalizing potential of being able to test for a wide variety of cancers all at once. The technique holds potential for saving lives, but also faces questions over accuracy and high development costs. Some competitors have scaled back their efforts, while others like Guardant Health are taking a cancer-by-cancer approach for now.
As part of the restructuring, Grail scrapped plans for two testing products in development, including a minimal residual disease test, which was designed to guide cancer treatment plans.
Grail expects to narrow its cash burn to a $325 million loss in 2025.