Ginkgo Bioworks to Lay Off Up to 400 Employees Amid Cost-Cutting Measures

1. Layoff Scope: Ginkgo Bioworks plans to lay off at least 35% of its workforce, which translates to around 400 employees based on its reported headcount of 1,218 as of December 31, 2023.
2. Reason for Layoffs: The layoffs are part of a cost-cutting measure to reduce labor expenses by at least 25% due to plunging revenues and a need to adjust to market conditions.
3. Company Background: Ginkgo Bioworks is a Boston-based cell programming and biosecurity company founded in 2008 by five MIT scientists. It has grown rapidly, but recently faced financial challenges, including a 53% revenue drop in the first quarter of 2024.
4. Leadership Response: CEO Jason Kelly acknowledged the layoffs, stating that the company remains well-capitalized and will focus on moving forward.
5. Delisting Threat: Ginkgo Bioworks received a notice from the New York Stock Exchange threatening delisting due to its low stock price, which the company aims to address within six months.