Verastem (VSTM) Plans 50% Workforce Reduction

Verastem (NASDAQ: VSTM) announced a reduction of its workforce by approximately 50% to 20 full time employees.

“This is an extremely painful decision that will impact many of our passionate and talented colleagues, and their families,” said Robert Forrester, President and Chief Executive Officer of Verastem. “I would like to convey my utmost gratitude to the employees who are departing Verastem for their dedication to trying to help develop novel therapeutics for patients and their many contributions to the company.”

All affected employees will receive severance pay and outplacement assistance. As a result of the reduction in force and associated costs, Verastem estimates annual savings of approximately $4.9 million in cash operating expenses on a going forward basis, with estimated one-time severance and related costs of approximately $825,000 over the fourth quarter of 2015 and the first quarter of 2016.

Verastem reported $132.1M in cash and cash equivalents at the end of the second quarter 2015.

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