Grail Lays Off About 350 Employees, Puts Brakes on New Hires

Layoff Details:
Grail, a biotech company, is laying off approximately 350 employees, which represents about 30% of its workforce.

Reason for Layoffs:
The layoffs are part of a restructuring plan aimed at reducing overall spending and focusing resources on the Galleri multi-cancer early detection test.

Impact on Headquarters:
179 employees at Grail's headquarters in Menlo Park will be laid off, including several senior and associate directors, engineers, scientists, and clinical lab associates.

Global Impact:
The layoffs will also affect employees in North Carolina and the United Kingdom, as well as some remote workers.

Financial Assistance:
Affected employees will receive severance pay and financial assistance toward continued healthcare.

Strategic Shift:
Grail is shifting some lab work from Menlo Park to facilities in North Carolina and will streamline its commercial sales force and reduce management layers and medical affairs teams.

Financial Impact:
The restructuring is expected to extend Grail's cash runway from the second half of 2026 into 2028 and result in $27 million in savings for 2024.

Regulatory Focus:
Grail is working to complete clinical studies, secure regulatory approval, and win reimbursement for the Galleri test from government healthcare programs like Medicare.

Recent History:
Grail recently completed its spinoff from Illumina in June 2024, following a previous acquisition and subsequent regulatory-mandated separation.

Product Focus:
The Galleri test, which detects cancer signals from a single blood draw, has sold over 215,000 commercial tests as of June 2024.