Troubled VaxGen is at it again: the company said it will reduce its workforce from 61 to 27 employees in order to lower its monthly cash expenditures used in operating activities to $1.4 million. The layoff includes executive officer Lance Ignon, Vice President of Corporate Affairs. This is the company's third round of layoffs: shortly after VaxGen failed to meet a federal deadline to restart human trials of an anthrax vaccine, the government canceled its $877 million contract.
"Throughout this year we have retained only those resources that management felt could build value for our shareholders, either because they enhanced our ability to complete a strategic transaction or they were required to meet essential business objectives," said James P. Panek, VaxGen's President and CEO. "Based on our understanding of the nature and structure of such potential transactions, we are now able to take this further restructuring action. We remain optimistic about completing a strategic transaction and are in various stages of discussions with a variety of companies."
- check out the releaseÂ from VaxGen