OvaScience Inc (NASDAQ:OVAS) recently announced that it will slash about 100 people from the workforce. Following the story, two of the company’s top executives left OvaScience, leaving the stock plummeting in the market. Slashing 100 people would mean that about 30% of the workforce shall be reduced from the company.
Slashing jobs to meet cash needs
The company explained that by cutting down its workforce, it will save the cash which shall be forwarded to the following year. Also, the company said that it will deal with the cash crunch through this mechanism and it will enable OvaScience to make this cash flow to Q12019.
The company is expecting to have “sufficient funds” in the first quarter of 2019.
Executives stepping down; company losing ground in market
Improvement in the cost structure by means of corporate restructuring and hierarchical changes are something that has been done among the businesses over the years. In the midst of top executives leaving the company, Michelle Dipp, the co-founder of this company, shall be seeing the operations until a new CEO is hired. The executives who stepped down from company’s executive chairs include Harald Stock, the CEO of company and Paul Chapman, the Chief Operating Officer.
Both these executives were hired so as to ensure that the Augment Treatment becomes widely accepted across the world.
However, the resignation of two top officials of the company shook the company’s stock by 55.2% to $1.33. The company lost $1.64 on the stock exchange market.
Enhancing the reach of Augment Treatment
Meanwhile, the company also announced that the Augment treatment shall continue to remain available to patients through partner clinics at Japan and Canada. It intends to make its footprint for commercialization intact. Though this treatment is also savailable in four other nations, but the USFDA and European bodies have still not put the treatment on approval mode. This treatment is aimed at strengthening the weaker eggs that have been fertilized by the sperm.