London, May 28 (IANS): UK-based AI drug discovery company BenevolentAI has announced to lay off about 180 employees as part of a restructuring plan that resulted from a strategic review, while CFO (Chief Financial Officer) Nicholas Keher has resigned.
According to BusinessCloud, the company will streamline and reorganise operations across two business units -- the Tech Business Unit and the Bio Business Unit, as part of a strategic reorganisation.
The reorganisation is projected to generate net cost savings of 45 million pounds, which includes 13 million pounds from facilities and other operating expenses, as well as 32 million pounds in savings from reduced drug programme and staff costs.
These savings are expected to extend the company's cash runway until at least July 2025, without accounting for any new revenues.
"Embarking on this process requires difficult decisions, particularly concerning our valued colleagues," CEO Joanna Shields was quoted as saying.
"Our new strategic direction ensures we maximise our portfolio and leverage the knowledge and expertise we have built up in recent years to meet this moment of opportunity for AI in biopharma," she added.
As part of its strategic plan, the company may develop a new suite of revenue-generating products to capitalise on the vast potential of AI-driven technologies in the biopharma domain, the report said.
Meanwhile, leading biotechnology company Twist Bioscience Corporation has announced to lay off 270 people, or about 25 per cent of its workforce, as it aims to accelerate its path to profitability.
The company enables customers to succeed through its offering of high-quality synthetic DNA using its silicon platform.