More layoffs at ImmunityBio, bringing fall cuts in California to 31

ImmunityBio's layoffs in California continue, with the company cutting 15 employees effective Nov. 25 under the Worker Adjustment and Retraining Notification Act Notes. This brings the total number of employees laid off in California this fall to 31.

The workers affected by the recent layoffs are located in Culver City, El Segundo and San Diego, with the majority (10) in El Segundo. There are also five employees in Culver City and eleven in El Segundo dismissed effective Oct. 29, according to an Aug. 30 WARN notice.

While ImmunityBio didn't officially announce the new round of cuts or the reasons behind them, there was a recent report SEC filing pointed out the company's financial challenges. As of June 30, the San Diego-based biotech company had a cumulative deficit of $3.2 billion. The company also reported negative cash flow of $207.3 million in the six months ended June 30.

Part of the financial strain may be due to ImmunityBio having to wait longer than hoped for Anktiva, its first-in-class therapy for non-muscle-invasive bladder cancer, to come to market. In May 2023, the FDA rejected its Biologics License Application (BLA) for the drug. The company got FDA approval in April, almost a year later.

In August, ImmunityBio announced Anktiva widespread to serve patients through commercial and government insurance programs and expects to expand its bladder cancer program worldwide, including in the European Union and India.