Stamford-headquartered Sema4 announced significant changes to its leadership and workforce following a money-losing second quarter earnings report, with the departure of company founder Eric Schadt from its executive team and the layoffs of 250 employees.
Following the report that the company”™s second quarter total revenue was $36.2 million compared to $47 million one year earlier and that it recorded an $85.7 million net loss compared to a $43.5 million net loss in the same period of 2021, Schadt resigned as president and chief research and development officer and also stepped down from the board of directors, effective immediately. Matthew Davis, the head of artificial intelligence and data at Invitae Corp. and a former group leader at IBM Research, was hired as chief technology and product officer.
The company also announced it would be eliminating approximately 250 positions, representing approximately 13% of its workforce ”“ this follows workforce reductions from earlier in the year that removed 17% of its employees from the payroll. Sema4 also announced it was moving its hereditary cancer testing operations from Stamford to Gaithersburg, Maryland, stating this would “improve gross margins by leveraging superior automation capabilities in the clinical laboratory in Gaithersburg.”
“Our mission is to unlock insights from data, leading to healthier lives,” said CEO Katherine Steuland. “To do that, we”™re making pivotal decisions to strengthen our foundation and finances. Since May, our new management team has been assessing the overall operating model, looking at the profitability profile of each line of business. We are clear-eyed about the opportunities we have today to make a positive impact on more patients by focusing on our strengths and in areas where we have operational scale, competitive advantage, and scientific leadership.”
Photo of Eric Schadt courtesy of Sema4
