LENZ and Molecular Partners make deep cuts to refocus commercial and pipeline plans

Two more life sciences companies announced large workforce reductions in the last week of October. LENZ Therapeutics disclosed in an 8-K filed on 28 October that its board had approved a reorganisation cutting headcount by about 75%, and on 29 October Molecular Partners said it intends to remove up to 55 positions as it refocuses on radiopharmaceuticals.

LENZ: a commercial reset

LENZ will be left with about 40 full-time employees. The filing says the aim is to prioritise consumer marketing, put capital behind sales growth and reduce operating costs. The company expects the reorganisation to be substantially complete in the fourth quarter and to book about $5M in related charges, mostly severance. BioSpace's layoff tracker links the move to third-quarter results that fell short of expectations.

Leadership is changing too. Evert Schimmelpennink will step down as President and CEO on 1 December, and CFO Daniel Chevallard will become Interim President and CEO from that date. The filing states that the departure is not the result of any disagreement with the company. Schimmelpennink will stay on as a strategic adviser to the CEO until the end of the year.

Molecular Partners: narrowing the pipeline

Molecular Partners notified the Zurich cantonal economic office that it plans to cut no more than 55 positions, which would be up to about 44% of its workforce. Under Swiss employment law a consultation with employees has begun, and the company says it will offer support to those affected afterwards. It expects the changes to be fully in place by the second quarter of 2027.

The trigger is strategic rather than a single failure. The company says early clinical data from its lead candidate, MP0712, is the basis for concentrating resources on its Radio-DARPin programmes, with the goal of becoming a leading radiopharmaceuticals company.

The rest of the week

BioSpace's tracker also logged Immutep on 30 October. The company is reducing costs after a Phase 3 futility outcome, to preserve cash and extend its runway, but did not give a number. It had 46 employees at the end of June, according to its SEC filing.

The bigger picture

Earlier this month BioSpace reported that Q3 layoffs were the lowest on record, with 27 companies cutting 2,568 people. The cuts that are still happening tend to be steep and specific: a commercial model that is not working, or a pipeline being narrowed to its strongest asset.