TELA Bio, Inc. (NASDAQ: TELA) announced that its Board of Directors approved a workforce reduction plan on August 28, 2026, cutting approximately 20% of its employees as part of an effort to reduce operating expenses.

The plan will reduce the company's headcount from 201 to approximately 160 full-time employees. The reduction is expected to be substantially completed during the third quarter of 2026.

The company estimates it will incur aggregate charges of approximately $1.5 million related to the plan, consisting primarily of severance and other employee-related costs. The company expects substantially all of these charges to result in cash expenditures during the third quarter of 2026.

The company noted that actual results may differ materially from its estimates and that additional charges or cash expenditures not currently anticipated could arise as the plan is implemented.