Ginkgo Bioworks (NYSE: DNA) stock plunged during intraday trading Wednesday after the company expanded layoff plans, adding to earlier workforce reductions.
The latest update reveals that Ginkgo Bioworks intends to cut at least 35% of its workforce, translating to approximately 400 employees based on its last reported total headcount of 1,218. These layoffs are part of a broader restructuring to reshape its business strategy.
The initial phase of job cuts will begin this month, with further reductions expected through 2025. Ginkgo Bioworks anticipates incurring $12 million in severance and related separation costs due to these initial layoffs. The company also forecasts a 25% reduction in labor costs following the restructuring.
The expanded layoffs follow earlier announcements this week, including plans to reduce 158 workers, now integrated into the broader layoff strategy disclosed on Wednesday.
Ginkgo Bioworks (NYSE: DNA) Stock Price Action
DNA stock plummeted 11.31% on Wednesday, closing at $0.28, marking a 32.57% decrease for the week. The trading volume was 136,159,936 shares, significantly higher than the average daily volume of 49.93 million.
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