DermTech, a precision dermatology company, has revealed its plans to further reduce its workforce in order to prioritize revenue growth and save cash. The company will be laying off 30 employees, which accounts for 15% of its total headcount.
With this move, DermTech aims to not only streamline operations but also expects to achieve significant cost savings. When combined with its previous cost-cutting measures, the company anticipates reducing its total operating expenses by $40 million.
To implement these changes, DermTech will incur a one-time restructuring charge of approximately $1.3 million, which will be reflected in its first-quarter financial report.
Despite the challenges, DermTech remains committed to its primary objective of driving revenue growth. The company has recorded promising improvements in its top-line and operating metrics during the third quarter of 2023.
Earlier in June, DermTech had already initiated a turnaround plan, which involved cutting its total headcount by 15% and suspending all pipeline programs. These actions were taken to focus on the significant growth opportunities presented by its DermTech Melanoma test.