NGM Biopharmaceuticals to cut 33% of existing headcount in restructuring

In a regulatory filing, NGM Biopharmaceuticals disclosed that on April 3, the board of the company approved a restructuring of the company’s workforce, or the restructuring, pursuant to which the company’s workforce will be reduced by 75 people, or approximately 33% of the company’s existing headcount. The restructuring was communicated to employees on April 4. The company estimates that it will incur approximately $5.0M in restructuring charges in connection with the restructuring, consisting of approximately $4.5M in cash-based expenses related to employee severance and notice period payments, benefits and related costs, and approximately $0.5M in non-cash stock-based compensation expense related to the vesting of share-based awards. The company expects that the majority of the restructuring charges will be incurred in the second quarter of 2023 and that the execution of the restructuring, including cash payments, will be substantially complete by the end of the second quarter of 2023.