Histogenics (NSDQ:HSGX) said last week that its board of directors approved a restructuring plan that would result in layoffs for all but one of the company’s employees. The layoffs include CEO Adam Gridley and COO Stephen Kennedy.
Gridley and Kennedy plan to evaluate “strategic alternatives” for the company in consulting capacities alongside up to four other unnamed employees, the company said in an SEC filing.
The company noted that it expects to record a one-time charge for severance and related expenses of roughly $2.2 million by the end of the first quarter of 2019.
Earlier this year, Histogenics reported that its board approved a restructuring plan with a 65% reduction in its workforce, including CMO Dr. Lynne Kelley and chief business officer Donald Haut.
The effort to restructure comes after the company halted development of its NeoCart product. A pivotal trial of the device failed to meet its primary endpoint last year and Histogenics’ shares plummeted.