Bluebird Bio Joins Layoff Band Wagon As Gene Therapy Biotech Cuts Staff To Reduce Costs

Bluebird Bio Inc BLUE is laying off about 30% of its workforce before the FDA decides the fate of two of its gene therapies.
The gene therapy-focused company is showing the exit to nearly one-third of its staff to extend its cash runway into the first half of 2023 and save $160 million over the next two years.
Bluebird plans to reduce its workforce across the second and third quarters of 2022, the company revealed in an SEC filing.
Severance and termination costs will tally at nearly $10 million.
Last month, the biotech said it planned to spend less than $400 million in 2022. Now bluebird expects a 35% to 40% dip in operating costs.
The company awaits two FDA decisions on its lentiviral gene therapies, one for beti-cel (marketed in Europe as Zynteglo) for β-thalassemia and the other for eli-cel, which is targeting a metabolic condition called cerebral adrenoleukodystrophy.
The FDA decision dates are August 19 and September 16, respectively.
Bluebird plans to file an FDA application for its sickle cell disease gene therapy, lovo-cel, in Q1 of 2023.
Price Action: BLUE shares are down 2.87% at $5.08 during the market session on the last check Tuesday.