San Mateo, CA – Kronos Bio, a San Mateo-based biotech company once valued at $1 billion, is laying off nearly all of its remaining workforce as it faces financial turmoil and the discontinuation of its sole clinical-stage compound. The company is losing millions of dollars each month and has suffered significant setbacks in its cancer research efforts.
83% Layoff After Ongoing Struggles
On Nov. 27, Kronos Bio announced a drastic 83% layoff in a filing with the Securities and Exchange Commission (SEC). This decision follows earlier rounds of layoffs, including those in November 2023 and March 2024. As of March 2024, Kronos had 62 employees, meaning the current layoffs will reduce its workforce to just a handful of employees, likely fewer than a dozen.
CEO Steps Down Amid Crisis
Along with the mass layoffs, Kronos revealed that CEO Norbert Bischofberger is stepping down effective Dec. 3. Deborah Knobelman, the company’s new interim CEO, will lead the company forward while working closely with the board to explore “strategic alternatives.” In a statement, Knobelman expressed her gratitude to the departing employees for their dedication and hard work.
“It was a difficult decision to implement a reduction in force as we evaluate strategic alternatives for the company,” Knobelman said in the release.
Financial Losses and Research Setbacks
Once riding high with a market capitalization of over $1 billion after its 2020 initial public offering, Kronos Bio’s value has plummeted to around $60 million since late 2022. The company specializes in oncology research. However, the company’s research efforts have been plagued by challenges.
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