MALVERN, PA — TELA Bio (Nasdaq: TELA) is cutting annual operating expenses by about $17 million and reducing its workforce by roughly 20%, a restructuring the medical technology company expects will extend its cash runway into 2028 as its chief operating and financial officer departs.
The company reported the cost reductions after completing a monthlong review of its operations and corporate infrastructure. TELA Bio expects the savings to come from the workforce reduction and a pullback in spending on external resources.
TELA Bio expects to record a one-time restructuring charge of approximately $1.5 million in the third quarter of 2026, primarily for severance and other employee-related expenses.
Chief Executive Officer Heather Getz stated that the company intends to preserve investment in its core growth priorities and product development while operating with a lower cost base.
“We have taken actions to reduce our annual operating expenses by approximately $17.0 million across the organization,” Getz said. She added that the changes are expected to “extend our cash runway into 2028.”
The restructuring coincides with the departure of Roberto Cuca, who is stepping down as chief operating officer and chief financial officer effective immediately after five years with the company.
Getz credited Cuca with helping TELA Bio scale its operations during his tenure. The company did not identify a successor for either of his roles in the release.
TELA Bio develops and sells medical technology used in soft-tissue reconstruction. The company plans to provide additional details about the cost-reduction measures with its third-quarter 2026 financial results in early November.
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