Unprofitable biotech co. Invitae lays off 238 San Francisco workers

Invitae, a genetic testing company based in Potrero Hill, is laying off 238 San Francisco workers.

The unprofitable company announced the 15% workforce cut in a filing Wednesday with the Securities and Exchange Commission, and detailed the local impacts in a WARN mass layoff notice sent to San Francisco city officials the same day. Invitae previously announced in July 2022 it was laying off 700 San Francisco employees, to take place from June through September 2023.

Invitae workers in the latest round will officially leave the company between Feb. 12 and May 6, 2024, according to the WARN notice. Designers, marketers, software engineers and recruiters are all part of the cut, and the notice also listed several directors and managers among those affected.

The 13-year-old Invitae, which reported having 1,700 employees at the end of 2022, has spent the last few years gobbling up other health tech companies. It bought consumer-facing Ciitizen in 2021 for $325 million, but announced Wednesday that it’d now be spinning off the Palo Alto subsidiary.

Like its stock price, which has dropped more than 98% in a three-year span reaching $0.67 at the end of trading Tuesday, the company’s most recent financial report had evidence of a major decline. Invitae pulled in less revenue from July to September than it did during the same period last year, and it reported a net loss of $1.3 billion from the start of the year to Sept. 30. 

“The actions announced today will assist in streamlining our operations and reducing our cash burn,” Invitae CEO Ken Knight wrote in a press release about the layoffs. “While these moves unfortunately involve a reduction in our workforce, we are committed to working closely with those impacted to ensure a smooth transition for them and for our customers and patients.”

Invitae did not immediately respond to SFGATE’s request for comment, and its SEC filing did not mention any intention to cut office space. The San Francisco Standard first reported the latest layoff round.

Hear of anything happening at Invitae or another tech company? Contact tech reporter Stephen Council securely at [email protected] or on Signal at 628-204-5452.