In a significant restructuring phase, Freenome Inc., a company specializing in developing early cancer detection tests, has announced it will be slashing its workforce by 20 percent, translating to around 100 jobs being cut within the next couple of months. The South San Francisco biotech firm, which recently raised $254 million to enhance its cancer-detection technology, is taking this step amid aligning its operations with strategic priorities, which remain undisclosed. The information was first reported by San Francisco Business Times.
With approximately 530 employees on its roster, the company's chief people officer, Julie Tran, confirmed the impending layoffs over the next 60 days, purporting to streamline its focus. The cuts will span across multiple functions in the company, striking a sharp contrast to the hopeful tone set by Freenome's leadership earlier this year. According to the San Francisco Business Times, CEO Mike Nolan and co-founder and Chief Operating Officer Riley Ennis had posited the February fundraising round, led by Swiss pharma giant Roche, would bolster the development of Freenome's platform.
In a LinkedIn post from Freenome, the company articulated its thanks to its team, acknowledging its contribution to advancing early cancer detection. "Today, we want to take a moment to express our deepest gratitude to our incredible team members who are the driving force behind Freenome’s mission," the company stated. The post further addressed the reorganization: "We are confident in the role our blood-based tests will have in leveling the playing field for all people who need access to recommended cancer screenings." The full post can be viewed on the company's LinkedIn page.
Freenome's recent achievements in non-invasive cancer detection had made headway, with early trial results indicating a notable sensitivity and specificity in its colorectal cancer test. These results were part of a large clinical trial that enrolled nearly 49,000 asymptomatic participants after launching in 2020. However, the restructuring inevitably casts a shadow, as about 100 jobs will be eliminated with the layoffs. The company recognizes the collective efforts through its LinkedIn announcement: "We extend our appreciation to these individuals for being integral to our journey and for contributing to this remarkable team." The company reassured that it is committed to supporting the impacted employees throughout the transition.
Despite the layoffs, Freenome's place in the competitive landscape of early cancer detection remains significant. Alongside giants like Illumina Inc.'s Grail and Guardant Health Inc., Freenome continues to develop liquid biopsy tests, offering a less invasive cancer screening option. Grail and Guardant already have products commercially available, reflecting the high stakes and intense competition in the biotech arena, as reported by the San Francisco Business Times.
