Recursion Pharmaceuticals announces 20% workforce reduction

In a regulatory filing, Recursion Pharmaceuticals (RXRX) stated, “On June 10, 2025, Recursion Pharmaceuticals announced a reduction in personnel and infrastructure aligned with the company’s previously announced streamlined operating strategy and post-integration employee transitions. Based on its revised expense profile and business plan, the company now expects its projected cash runway to extend into the fourth quarter of 2027. These changes are expected to result in a workforce reduction of approximately 20%. The company estimates that it will incur approximately $11 million in charges in connection with the workforce reduction, consisting of severance payments, employee benefits, and related costs, substantially all of which the company expects to incur in the year ending December 31, 2025. The company now expects its cash burn excluding partnership inflows or one-time severance costs to be less than $450 million in 2025 and less than $390 million in 2026. The company has the potential to receive over $100 million in cash inflows from progress-based milestone payments from partners by the end of 2026. The company expects cash, cash equivalents and restricted cash for the quarter ending June 30, 2025 to be above $500 million compared to $509 million as of the quarter ending March 31, 2025. This estimate is based on impacts from streamlining of operations, receipt of a one-time $28 million R&D tax credit, partnership inflows and utilization of the company’s at-the-market offering program, offset by one-time severance payments.”