Molecular Templates Does Second Wave of Job Cuts

Molecular Templates, a biotechnology company in global partnership with Bristol Myers Squibb, has reduced its employee count by 50% in March, just a few months prior to the 8-week long FDA clearance freeze for their CD38-directed cancer drug.

The reorganisation strategy has now led to a second round of job cuts, with Molecular Templates revealing that almost 45% of employees still working there will soon be dismissed.

The company still remains $10m in debt to investment firm K2 HealthVentures, although the restructuring suggests they have paid off $27.5m. The remaining unpaid amount will be settled in the sale of an asset or another business deal.

Prior to the cuts in March, they had a workforce of 222, so the most recent layoffs may affect almost 50 jobs.

Although they have reduced headcount significantly and no longer engage in a lot of their previous preclinical activities, they still remain in collaboration with BMS, which cost $70m in 2021

Molecular Templates explained that it “intends to continue to support its collaboration with BMS and its clinical studies.”

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