Twist Bioscience is reducing its workforce as it streamlines operations and concentrates on its most promising projects in synthetic DNA production.

Twist Bioscience announced in its Q2 2023 earnings report, which covered the period ending March 31, that it intends to reduce its workforce by approximately 270 employees, or a quarter of its staff.

Twist Bioscience has stated that the reduction in workforce will enable its R&D teams to concentrate on projects where the company can achieve long-term success. Meanwhile, a revamped biopharma team will be responsible for seeking partnerships that generate revenue.

While the workforce reduction is expected to reduce Twist's stock-based compensation expenses, the company anticipates incurring separation expenses in the range of $9 million to $11 million.

As part of its cost-cutting measures, Twist Bioscience plans to consolidate most of its synthetic biology product manufacturing to its newly opened "factory of the future" in Wilsonville, Oregon. The company will also reduce its investment in DNA-based data storage services and leave its long-time South San Francisco location to continue producing next-generation sequencing panels.

According to the company's CEO and co-founder, Emily Leproust, Twist is intently focused on achieving its goal of reaching a break-even point in terms of adjusted EBITDA for its core and biopharma businesses, while also preserving flexibility for the possibilities it sees in data storage.

“Following a strategic and holistic analysis of the business, we prioritised and reengineered our cost base, and with these substantive changes, we believe we are operating from a position of strength, operating as a leaner organisation focused on disruptive market opportunities for profitable and scalable growth,” she said.

Although Twist Bioscience achieved its highest revenues in the latest quarter, it has not yet achieved the EBITDA break-even point. However, the company aims to achieve this goal by the end of fiscal 2024. 

In the second quarter of fiscal 2023, Twist recorded revenues of $60.2 million, a growth of more than 25% from the $48.1 million recorded in the same period last year. This is the first time the company has crossed the $60 million revenue threshold, according to Leproust.