We don’t get layoff stories as much as we used to anymore. Kinda good and kinda sad. Anyway, here’s a new one: Cerus Corporation, which markets INTERCEPT, a system for removing pathogens from blood, is axing 31 employees or 30% of its workforce in an effort to save precious cash.

Management said the move will save the company $10M per year in operating costs and will cost $700,000 in restructuring fees/charges.

Math time!

A. 31 employees

B. $10M/year saved

C. $700K in layoff fees

D. Annual worth of employee = B/A = $333,333 (that doesn’t seem right - that’s too much!!!)

E. Severance/employee = C/A = $22,580

Here’s what CEO Claes Glassell had to say:

“Cerus is concentrating its efforts on increasing sales of the INTERCEPT platelet and plasma systems. We believe this reduction in operating expenses will extend our cash runway, reducing the pressure for a near-term financing. We thank all of our employees for their hard work on behalf of the company and their efforts in helping us commercialize the INTERCEPT Blood System. In particular, I would like to thank Bill for his many contributions since joining the company in 2004.”

Hard times…

Image from annco

Related Posts