TearLab Corp. (NSDQ:TEAR) said today it is undertaking a strategic restructuring that will result in the loss of 54 employees as the company looks to tighten the bolts in pursuit of positive cash flow.
The San Diego, Calif.-based company said the reorganization of will cost approximately $300,000, but is expected to save the company $9.4 million compared to its full year 2015.
“We remain very excited about the momentum we built in 2015 and are well positioned for continued growth. Nevertheless, given the current market environment, we needed to take this difficult step now of restructuring the company to reduce spending and improve our operating efficiency. We believe that we now have the optimal sales force and office support staffing levels to successfully drive a new model that will allow us to continue to grow our device footprint and utilization. Our core focus going forward is to reach self-sustainability by driving increased adoption of our diagnostics platform,” CEO Seph Jensen said in prepared remarks.
Earlier this month, TearLab said it would be winding down its majority owned subsidiary OcuHub, expecting another $3.5 million reduction in operating expenses for the year as well.
The company said it will provide more info on the new operating model during its Q4 and full year 2015 conference call scheduled for March 8.