Solazyme (SZYM) Sees Additional Charges in Q4 from Cost-Cutting Initiative; CEO to Take Lower Salary

On December 18, 2014, Solazyme, Inc. (NASDAQ: SZYM), as part of the operating and expense strategy communicated on its third quarter 2014 earnings conference call, took steps to decrease operating expenses through a reduction in workforce and other cost-cutting measures. As a result of these actions, the Company anticipates a reduction in annualized cash operating expenses of at least $18.0 million in 2015.

The Company anticipates recording a charge of approximately $3.0 million to $5.0 million in the fourth quarter of 2014 as a result of this plan, comprised primarily of involuntary termination benefits and closure costs. Affected employees will be eligible to receive severance payments, COBRA premium payments and outplacement assistance. The Company expects that the cash component of this charge totaling approximately $2.0 million will be paid out commencing in the fourth quarter of 2014 and will be primarily completed in the first quarter of 2015. The charge that the Company expects to incur in connection with these actions is subject to a number of assumptions, and actual results may differ. The Company may also incur other charges not currently contemplated due to events that may occur as a result of, or associated with, the plan. The Company expects to complete these actions by the end of the second quarter of 2015.

In conjunction with the plan, the Company’s Chief Executive Officer has volunteered to reduce his base salary by 25%, and all of the other members of the Company’s executive management team have volunteered to reduce their base salary by 10%, in each case effective as of January 1, 2015.

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