🔎 The synthetic biology company revealed plans to cut at least 35% of its workforce, which would mean eliminating around 426 jobs.
💰 ARK Investment Management sold off a significant number of Ginkgo shares, contributing to the stock decline.
💼 Ginkgo’s layoffs were completed on June 24, and CEO Jason Kelly acknowledged the difficulty of the decision.
💸 The company expects to spend at least $12 million in severance and related costs.
📈 Ginkgo’s shares have dropped significantly in the past six months, but they showed some recovery towards the end of the week.
Introduction:
Ginkgo Bioworks, a synthetic biology company, experienced a 26% decrease in its stock value following its announcement of job cuts. The company plans to eliminate at least 35% of its workforce, equivalent to around 426 jobs. The layoffs were completed just recently, impacting employees in Cambridge, MA, and Emeryville, CA. Additionally, Ginkgo Bioworks faced a significant sell-off of shares by ARK Investment Management’s ETFs. The stock decline was attributed to both the job cut announcement and the stock sell-off.
- Ginkgo Bioworks announced plans to reduce its workforce by at least 35%, resulting in a 26% decrease in stock value.
- The job cuts impacted employees in Cambridge, MA, and Emeryville, CA.
- ARK Investment Management’s ETFs sold off a combined 71,785,189 shares of Ginkgo stock, contributing to the decline in stock value.
- The company aims to spend at least $12 million on severance and related separation costs.
- Ginkgo Bioworks went public in September 2021 with high expectations but has faced criticism of its business model and declining stock value.
Conclusion:
Ginkgo Bioworks faced significant challenges following its announcement of job cuts and the subsequent stock decline. The company’s future success will depend on its ability to navigate these difficulties, cut costs effectively, and regain investor confidence. Despite the setbacks, Ginkgo Bioworks remains well-capitalized and stands as a prominent player in the field of synthetic biology.
