San Diego’s TearLab Corp. is laying off 54 of its 134 employees as part of a strategic restructuring plan to reduce company expenses.
The company expects the layoffs and other restructuring efforts will reduce annual operating expenses by about $9.4 million, according to a TearLab news release. These savings do not include the $3.5 million reduction the company expects to save by offloading its subsidiary OcuHub LLC, another cash-saving move announced by the company last month.
TearLab is attempting to extend its cash runway following the withdrawal of its planned public offering last month. The company cited “market conditions” as the reason for the withdrawal, stating, “The company believes that it is not in the best interest of its stockholders to raise equity capital in the current market environment. TearLab will continue to evaluate options to fund its business over the longer-term while, at the same time, prudently manage its resources.”
TearLab Corp. develops and markets “lab-on-a-chip” technologies that enable eye care practitioners to improve standard of care by testing for disease markers in tears at the point-of-care. The company moved its headquarters from San Diego to Dallas-Fort Worth, Texas, last year, but maintained its local R&D and manufacturing presence.