Ginkgo Bioworks (NYSE: DNA) stock plummeted during intraday trading Monday after a biotech company announced job cuts amid cost reduction efforts.
Ginkgo Bioworks has disclosed plans to reduce its workforce by 158 employees, representing a 25% reduction in labor costs. These layoffs are part of the company’s strategy to streamline operations following a recent earnings report that fell short of expectations, prompting a downward revision of its annual outlook.
In a statement, Ginkgo Bioworks co-founder and CEO Jason Kelly acknowledged the difficulty of the decision. He stated,
“We are letting go of these amazing employees as part of changes we are making to our technology platform at Ginkgo and a near-term focus on reaching breakeven. We are sad to see them go.”
The company had announced these layoffs in May, with additional job reductions expected next week.
In addition to the layoffs, Ginkgo Bioworks faces challenges in its stock performance. Following the earnings report, DNA stock has struggled, trading below $1 per share. This places Ginkgo at risk of being delisted from the New York Stock Exchange (NYSE) due to non-compliance with listing requirements.
Ginkgo Bioworks (NYSE: DNA) Stock Reaction
DNA stock plunged 13.71% on Monday, closing at $0.3662, marking an 18.57% decrease for the week. The trading volume was 158,024,128 shares, significantly higher than the average daily volume of 45.55 million.
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