Cellares CEO Fabian Gerlinghaus announced a restructuring plan involving 100 layoffs following the loss of a major pharmaceutical contract.
Cellares CEO Fabian Gerlinghaus announced that the biotechnology startup will lay off 100 employees by October 20 to restructure after losing a contract with a large pharmaceutical customer. The South San Francisco company, which specializes in cell therapy manufacturing, underwent this shift just two months after securing a $327 million Series D funding round. While the specific partner was not named, the company reported that it has more than doubled its customer base since the beginning of the year. Cellares utilizes automated "Cell Shuttles" to accelerate treatment production and has maintained partnerships with firms such as Bristol Myers Squibb and Sonoma Biotherapeutics. The layoffs will primarily affect software engineers, quality control staff, and manufacturing specialists. Despite the workforce reduction, the company remains committed to expanding its manufacturing presence in New Jersey, Europe, and Japan. Cellares was recently selected as the only cell therapy manufacturer for the Food and Drug Administration’s "pre-check" pilot program to streamline regulatory reviews.