Applied DNA Sciences announces restructuring, 27% workforce reduction

Applied DNA Sciences (APDN) announced a strategic restructuring and realignment of resources to focus exclusively on its synthetic DNA manufacturing business, LineaRx. As part of actions undertaken, the Company implemented a workforce reduction of approximately 27% of headcount and has ceased operations at Applied DNA Clinical Labs, a business that provides molecular and genetic testing services, effective June 27, 2025. The Company’s actions are intended to substantially reduce its operating costs and concentrate resources behind LineaRx to: enhance the capabilities of LineaRx’s LineaDNA and LineaIVT platforms while scaling commercial adoption, expand its service offerings; and (iii) pursue strategic partnerships. LineaRx is advancing platform technologies for the enzymatic manufacture of synthetic DNA and associated enzymes used in the production of DNA- and RNA-based medicines. The workforce reduction represents an approximately 27% reduction in headcount, equating to a projected 23% reduction in annual payroll costs, excluding payroll expenses incurred as a result of the previously announced retirement of the Company’s former Chairman and CEO. The projected annual payroll savings is expected to be partially offset by approximately $300 thousand in one-time charges related to the workforce reduction, primarily for separation benefits. The Company expects to incur the majority of workforce reduction-related costs by the end of the fourth quarter of fiscal 2025, excluding expenses associated with the retirement of the Company’s former Chairman and CEO. Since initiating its strategic restructuring in December 2024, Applied DNA has exited non-core operations and reduced headcount by 39% for a projected 31% reduction in annual payroll expenses as compared to the fiscal year ended September 30, 2024, excluding costs related to the retirement of the Company’s former Chairman and CEO. In addition to the actions reported in this press release, the Company exited its DNA Tagging and Security Products and Services business segment in February 2025 and undertook a workforce reduction of approximately 20% of the then-total headcount, primarily related to employees associated with this segment. The Company ended May 31, 2025, with approximately $4.8 million in cash and cash equivalents.