Recursion to lay off 20% of workforce amid biotech funding woes

By Mariam Sunny - 6/10/2025

</head><body><p>By Mariam Sunny</p><p>(Reuters) -Recursion Pharmaceuticals said on Tuesday it would lay off about 20% of its workforce as the biotech company tries to cope with an industry-wide funding crunch and the current policy uncertainty.</p><p>The biotech firm had about 800 employees as of December 31, 2024, a regulatory filing showed.</p><p>Investors fear that a major overhaul of health agencies under Health Secretary Robert F. Kennedy Jr., a longtime vaccine skeptic, along with cuts to federal research grants and other policy changes, could delay drug approvals and trigger a substantial biotech selloff.</p><p>Shares of the Salt Lake City, Utah-based biotech rose more than 1% to $5.43 in premarket trading. </p><p>Recursion is trying to "reduce the complexity, especially in the context of a challenging and frictional capital markets environment, so that every dollar drives real return on investment (ROI) for our investors and for patients," CEO Christopher Gibson told Reuters. </p><p>Recursion's restructuring plan is expected to keep its 2025 cash burn below $450 million, excluding partnership payments and one-time severance costs, and 2026 burn under $390 million, extending its cash runway into the fourth quarter of 2027. It had previously projected the cash runway into mid-2027. </p><p>The S&P Biotech ETF is down about 6.4% this year and is trading at less than half its 2021 peak. Shares of Recursion have fallen 21% so far this year. </p><p>While Recursion, which uses artificial intelligence to discover new drug candidates, is not as affected as other biotech firms, raising money and securing partnerships remain challenging in the sector, Gibson said. </p><p> (Reporting by Mariam Sunny in Bengaluru; Editing by Tasim Zahid and Anil D'Silva)</p></body></html></p> <div id="news-wrapper"> <div class="thumbnail additional-resources client-content-image-box"> <div class="box-image" style="background-image: url(/images/home/news.jpg);"></div> <div class="caption"> <h3>Nationwide News</h3> <div> <p><a href='/mh/news-article-detail.aspx?id=155564'>NJ AG investigating after Fort Lee police shoot woman in ‘mental health crisis’</a></p> <p><a href='/mh/news-article-detail.aspx?id=155555'>How understaffing, mental health failures led to ‘mounting crisis’ in Richland County jail</a></p> <p><a href='/mh/news-archive.aspx'>News Archive</a></p> </div> </div> </div> </div> </div> </div> </div> </section> </div>  <footer class="footer">  <div class="clearfix footerInfo"> <div class="container"> <div class="row"> <div class="col-sm-7 col-xs-12"> <div class="footerText"> <a href="http://www.trilogyir.com/" target="_blank" class="footerLogo"><img src="/images/Noc-Logo-white.png" alt="Footer Logo" style="width: 200px;"></a> <div class="genericContent" id="landingPageText"> <p>The Network of Care for Mental/Behavioral Health is an online information portal for individuals, families and social service agencies concerned with community mental health services, substance use treatment programs and help for people with developmental disabilities.</p> </div> <h3 id="lblTechAssistance" style="color: #fff; margin: 25px 0 5px;">For Technical Assistance:</h3> <ul class="list-styled list-contact"> <li><i class="fa fa-envelope" aria-hidden="true"></i><a href="mailto:admin@trilogyir.com?Subject=From Network of Care">admin@trilogyir.com</a></li> </ul> </div> </div> <div class="col-sm-3 col-xs-12"> <div class="useLink"> <ul class="list-unstyled"> <li id="liFooterLinks1aMH" style="display: none;"></li> <li id="footer-services"><a href="/mh/services/index.aspx">Services</a></li> <li id="footer-library"><a href="/mh/library/index.aspx">Library</a></li> <li id="footer-links"><a href="/mh/links/index.aspx">Links</a></li> <li id="footer-legislate"><a href="/mh/legislate/index.aspx" id="footerLinks1PlaceHolder_mhFooterLegislate">Legislate</a></li> </ul> </div> </div> <div class="col-sm-2 col-xs-12"> <div class="useLink"> <ul class="list-unstyled"> <li id="ucOtherSites_liVisitOtherSites"> <a href="#" id="btnOtherSites" data-toggle="modal" data-target="#otherSiteModal">Visit Our Other Sites</a> <div class="modal fade" id="otherSiteModal" tabindex="-1" role="dialog" aria-labelledby="otherSiteModalLabel"> <div class="modal-dialog" role="document"> <div class="modal-content"> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> <h4 class="modal-title" id="otherSiteModalLabel">Visit Our Other Sites</h4> </div> <div class="modal-body"> <div id="other-sites-footer" class="row"> <div class="col-sm-6 col-xs-12 text-center" style="height: 120px;"><a href="http://annearundel.md.nocbeta.org/mh/" class="currentSite"><img src="/images/home/products/mh.jpg" alt="Behavioral Health " class="img-responsive center-block"/> Behavioral Health </a></div><div class="col-sm-6 col-xs-12 text-center" style="height: 120px;"><a href="http://annearundel.md.nocbeta.org/veterans/" class=""><img src="/images/home/products/veterans.jpg" alt="For Veterans " class="img-responsive center-block"/> For Veterans </a></div> </div> </div> <div class="modal-footer"> <button type="button" class="btn btn-default" data-dismiss="modal">Close</button> </div> </div> </div> </div> </li> <li id="liFooterLinks2aMH" style="display: none;"></li> <li id="footer-about"><a href="/mh/about/">About Us</a></li> <li id="footer-feedback"><a href="/mh/feedback.aspx">Feedback</a></li> <li id="footer-privacy"><a href="/mh/privacy.aspx">Privacy Policy</a></li> <li id="footer-widgets"><a href="/mh/services/widget.aspx">Add This Service Directory to Your Website</a></li> </ul> </div> </div> </div> </div> </div>  <div class="clearfix copyRight"> <div class="container"> <div class="row"> <div class="col-xs-12"> <div class="copyRightWrapper"> <div class="row"> <div class="col-sm-5 col-sm-push-7 col-xs-12">  <div class="addthis_inline_share_toolbox_es1d"></div> </div> <div class="col-sm-7 col-sm-pull-5 col-xs-12"> <div class="copyRightText"> <p>Copyright ©<span id="copyrightYear">2025</span> Network of Care - Anne Arundel County, All Rights Reserved.</p> </div> </div> </div> </div> </div> </div> </div> </div> </footer> <input type="hidden" name="ctl00$ctl00$hdnSiteUrl" id="hdnSiteUrl" value=".nocbeta.org" /> <input type="hidden" name="ctl00$ctl00$hdnSiteCountyId" id="hdnSiteCountyId" value="259" /> <input type="hidden" name="ctl00$ctl00$hdnSessionId" id="hdnSessionId" value="2new1aaocrwu42qvynd5cbzk" /> </form> </div>   <div class="modal fade" id="searchHelpModal" tabindex="-1" role="dialog" aria-labelledby="searchHelpModal"> <div class="modal-dialog modal-lg" role="document"> <div class="modal-content"> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close Improving Service Directory Search Results"><span aria-hidden="true">×</span></button> <h4 class="modal-title">Improving Search Results</h4> </div> <div class="modal-body"> <p>To improve your search results use quotation marks when searching for a specific phrase.</p> <p>For example, if you search for substance use, a search WITHOUT quotation marks would find listings that include the words "substance" OR “use.” A search WITH quotation marks ("substance use") would find listings only with the whole phrase "substance use."</p> </div> <div class="modal-footer"> <button type="button" class="btn btn-default" data-dismiss="modal">Cancel</button> </div> </div> </div> </div>  <div class="modal fade" id="LanguageModal" tabindex="-1" role="dialog" aria-labelledby="LanguageModalLabel"> <div class="modal-dialog" role="document"> <div class="modal-content"> <div class="modal-header"> <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">×</span></button> </div> <div class="modal-body"> <div class="alert alert-danger" role="alert" id="LanguageModalLabel"> Translation service is not available for Internet Explorer 11 or lower. Please use another browser or download the latest <a href="https://www.microsoft.com/en-us/edge" target="_blank" title="Download Microsoft Edge">Microsoft Edge</a> browser. </div> <p> Spanish:<br /> Para traducir este sitio web, debe actualizar su navegador a la última versión de <a href="https://www.microsoft.com/en-us/edge" target="_blank" title="Download Microsoft Edge">Microsoft Edge</a>. </p> <p> Vietnamese:<br /> Để dịch trang web này, bạn phải nâng cấp trình duyệt của mình lên phiên bản <a href="https://www.microsoft.com/en-us/edge" target="_blank" title="Download Microsoft Edge">Microsoft Edge</a> mới nhất. </p> <p> Mandarin:<br /> 要翻译该网站，您必须将浏览器升级到最新版本的 <a href="https://www.microsoft.com/en-us/edge" target="_blank" title="Download Microsoft Edge">Microsoft Edge</a>. </p> </div> <div class="modal-footer"> <button type="button" class="btn btn-default" data-dismiss="modal">Close</button> </div> </div> </div> </div>  <div hidden> <span id="new-window-0">Opens in a new window</span> <span id="new-window-1">Opens an external site</span> <span id="new-window-2">Opens an external site in a new window</span> </div>  <script src="/plugins/jquery-ui/jquery-ui.min.js"></script> <script src="/plugins/bootstrap/js/bootstrap.min.js"></script> <script src="/plugins/smoothscroll/SmoothScroll.min.js"></script> <script src="/plugins/datepicker/bootstrap-datepicker.min.js"></script> <script src="/plugins/selectbox/jquery.selectbox-0.1.3.min.js"></script> <script src="/plugins/owl-carousel/owl.carousel.min.js"></script> <script src="/plugins/fancybox/jquery.fancybox.pack.js"></script> <script src="https://maps.googleapis.com/maps/api/js?key=AIzaSyD3AS9ys5quFZTXhCkvZuwQfmi1bS9r9_o&libraries=geometry"></script> <script src="/plugins/map/js/rich-marker.js"></script> <script src="/plugins/map/js/infobox_packed.js"></script> <script src="/js/single-map.js"></script> <script src="/js/map.js"></script> <script src="/js/jquery.query.js"></script> <script src="/js/handlebars.min.js" type="text/javascript"></script> <script src="/js/jquery.history.js" type="text/javascript"></script> <script src="/plugins/slick/slick.min.js"></script> <script src="https://cdnjs.cloudflare.com/ajax/libs/jquery-validate/1.17.0/jquery.validate.min.js"></script> <script src="https://cdnjs.cloudflare.com/ajax/libs/jquery-validate/1.17.0/additional-methods.min.js"></script> <script src="/js/custom.js?v2"></script> <script src="/js/solr.js" type="text/javascript"></script> <script src="/js/moment.js" type="text/javascript"></script> <script src="/js/global.js?v20201022" type="text/javascript"></script> <script src="/js/jquery.cookie-min.js" type="text/javascript"></script> <script src="/js/bootbox.min.js" type="text/javascript"></script>  <script type="text/javascript" src="//s7.addthis.com/js/300/addthis_widget.js#pubid=ra-63222935cadd2722"></script> <script src='https://www.google.com/recaptcha/api.js'></script> <script src="/js/bootstrap-timepicker.min.js"></script> <script src="https://cdn.datatables.net/1.11.5/js/jquery.dataTables.min.js"></script> <div id="dialog-confirm" title="Confirm" style="display: none;"> <p class="txt-color-red font-md"> <span class="glyphicon glyphicon-trash"></span> Are you sure you want to delete this item? </p> </div> <div id="surveylink" class="survey-link"><a id="opensurvey" href="#" target="_blank">Site Survey</a></div> <script type="text/javascript" src="/angelfish.js"></script> <script type="text/javascript"> agf.pageview(); </script> </body> </html>

State Legislate

Federal Legislate

Recursion to lay off 20% of workforce amid biotech funding woes