Evofem Biosciences Announces 39% Reduction in Payroll Expenses

  • Investing.com
Evofem Biosciences Announces 39% Reduction in Payroll Expenses

On March 20, 2023 the Board of Directors of Evofem Biosciences (OTC: EVFM ) approved a reduction in force (“RIF”) intended to conserve the Company’s current cash resources and manage operating expenses. The Company will reduce its current workforce resulting in an overall 39% reduction of payroll expenses including (i) salary cuts for certain employees, (ii) elimination of eight office and management positions including the elimination of the Chief Commercial Officer role effective March 17, 2023; and (iii) reduction of the Chief Executive Officer’s salary by 40%. The Company expects annualized future cost savings from the reduction in force to be approximately $4.3 million, which the Company intends to use to support its operations.

The Company estimates that it will incur aggregate pre-tax charges of approximately $0.1 million in connection with the reduction in force, primarily consisting of notice period and severance payments, employee benefits and related costs. The Company expects that the reduction in force will be complete by the end of the second quarter of 2023 and that these one-time charges will be incurred in the first quarter of 2023.

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