TearLab Corp. (OTC:TEAR) is looking to keep its customer base and reduce the company’s cash burn rate with a new business model that will result in people losing their jobs, according to regulatory filings.
The company said that it wants to focus resources on the development of its next-gen TearLab Discovery platform.
TearLab did not report exactly how many employees it will let go, but said it plans to “reduce headcount across its commercial, administrative and technical functions.”
The company expects to incur a charge of $200,000 – $250,000 related to employee severance costs. TearLab added that it will finish instituting most of the new business model by the end of 2017.
The company this year also implemented a 1-for-10 reverse split of its common stock, reducing the total number of authorized shares of common stock from 95 million to 9.5 million.
This year’s restructuring comes almost one year after a different strategic restructuring resulted in the loss of 54 employees as the company pursued positive cash flow.
The reorganization cost the company $300,000, but was expected to save the company $9.4 million compared to its full year 2015.
Earlier that month, TearLab said it would wind down its majority owned subsidiary OcuHub, expecting another $3.5 million reduction in operating expenses for the year.