Days after announcing a strategic review of its business, Magenta Therapeutics has decided to cut 84% of its workforce, per a restructuring plan approved by the company's board of directors.
In an SEC filing, the Massachusetts-based biotech said it will reduce its operations to "preserve financial resources," a move that will involve cutting 56 positions by Feb. 17, 2023 — including most of its C-suite.
Shortly after pausing its leukemia trial following the death of a patient, Magenta announced last week that it was halting development of all programs and exploring its options. The death occurred in the company's phase 1/2 dose-escalation trial testing MGTA-117, an anti-CD117 antibody-drug in relapsed/refractory acute myeloid leukemia and myelodysplastic syndrome.
Per the new plan, the following execs will leave the company: Jason Gardner, president and CEO; David Nichols, CTO; Caren Deardorf, CCO; Kristen Stants, chief people officer; and Shawn Rose, senior VP and head of Clinical Development. Gardner, Nichols and Deardor will likely stay involved in a consulting capacity, according to the filing.
But the execs won't leave empty-handed — Magenta expects to incur estimated severance and related costs of $5.4 million by the end of February.