Akili announced that its board of directors approved an operating plan for 2023 that includes a 30% workforce reduction.
The Boston-based digital therapeutic developer’s reduction reaches across different areas and functions. In total, 30% of Akili’s workforce amounts to 46 employees. The company communicated the decision to employees on Jan. 12 and expects to complete the reduction by the end of the first quarter.
Akili intends to offer affected employees severance and other benefits. It projects that related costs will total approximately $1.5 million to $2.5 million. The payments of these costs are expected to be made in the first quarter.
The company’s new operating plan also includes a pipeline reprioritization of its preclinical and clinical development programs. Akili also intends to prioritize resources on its commercial organization and efforts.
In a letter from CEO Eddie Martucci, he called the decision “necessary but difficult.” Martucci explained that the economic environment “dramatically shifted,” putting pressure on all companies “to be extremely lean and operate as efficiently as possible toward profitable growth.”
“As difficult as this decision is, it is the right thing to do for our business and all Akili shareholders, and, most importantly, we believe it best enables us to deliver on our promise to millions of patients,” Martucci wrote.
Akili develops the EndeavorRx video game for children with attention deficit hyperactivity disorder (ADHD). The prescription treatment is delivered through a video game experience as a way to improve attention function as measured by computer-based testing
While I know that it is difficult to see colleagues leave Akili, I believe this action allows us to enter 2023 with a highly focused organization built to efficiently drive growth of our flagship product and support current and future EndeavorRx families,” Martucci wrote.