DermTech announces restructuring, will lay off roughly 15% of workforce

DermTech announced additional restructuring actions to prioritize revenue growth, streamline operations and further reduce overall operating expenses. The Company has continued to rigorously evaluate its growth opportunities and operations, while dedicating substantially all of its resources to growing reimbursed DermTech Melanoma Test (DMT) billable samples and expanding payer coverage. These additional restructuring actions will primarily affect operations, but impact the entire organization, and will result in a workforce reduction of approximately 30 employees, or approximately 15 percent of DermTech’s workforce. The Company expects to achieve approximately $40 million in total operating expense reductions compared to fiscal 2022, when combined with its initial restructuring plan announced in June 2023. The Company anticipates a one-time restructuring charge of approximately $1.3 million in the first quarter of 2024. “As we wrapped up last year, we recommitted to rigorous capital allocation in support of revenue growth and finding additional operating efficiencies in 2024,” said Bret Christensen, CEO, DermTech. “Growing revenue remains our primary objective and we began to see meaningful improvement in many of our top-line and operating metrics during the third quarter of 2023. Our realigned commercial tactics and focus on reimbursed tests has yielded improvement in nearly all of our key performance indicators. We must continue to refine our approach as we learn more and be determined to achieve these goals with a lean organization and by aligning behind only the highest ROI opportunities.”