U.S. Biotech Firm to Slash 30% of American Workforce in Workforce Reduction

SAN FRANCISCO, July 19 (Xinhua) — FibroGen, a biotech company based in San Francisco, California, revealed plans on Wednesday to lay off 104 workers, which amounts to approximately one-third of its U.S. employees.

This move by FibroGen aims to reduce its U.S. workforce by around 32%, resulting in an estimated annual expense reduction of $30-35 million.

According to a corporate filing, the company anticipates charges of $13-15 million for severance pay and employee benefits associated with these layoffs.

Following a month-long decline, FibroGen shares plummeted by over 85%, and on Wednesday, they experienced a further decrease of approximately 7%. Consequently, the company’s market capitalization now stands at $232 million.