Shares of gene therapy company Bluebird Bio (NASDAQ:BLUE) rose as much as 2.3% to 49 cents in premarket trading on Tuesday, though the gain settled at 1% at last check.
This increase follows the company's announcement of a significant restructuring plan aimed at optimizing cash flow and reducing operating expenses.
As part of the restructuring, Bluebird Bio says it will reduce its workforce by approximately 25%, a move designed to help the company achieve cash flow break-even by the second half of 2025.
The company aims to cut its operating cash expenses by 20% as part of this plan.
In connection with the restructuring, Bluebird Bio expects to incur aggregate charges of $3.7 million, which will be paid out through the fiscal year ending December 31, 2024.
As of June 30, the company had 375 full-time employees.
Despite the recent rise, the company’s stock has faced significant challenges, down 64.6% year-to-date.