MALVERN, PA — TELA Bio Inc. (Nasdaq: TELA) plans to eliminate 41 jobs and reduce outside expenses under a restructuring expected to lower annual operating costs by $17 million as the medical-technology company seeks to preserve cash following a going-concern warning.
The board approved the workforce reduction Aug. 28, according to a regulatory filing. Full-time employment will fall about 20%, from 201 positions to 160, with the cuts expected to be substantially completed during the third quarter.
TELA Bio expects the broader cost program to reduce annual operating expenses by approximately 18%. The company projects about $1.5 million in restructuring charges, primarily for severance and other employee-related costs, during the third quarter.
Most of those charges are expected to result in cash expenditures. TELA Bio cautioned that its estimates depend on several assumptions and that additional costs could arise as the plan is implemented.
The contraction follows the company’s Aug. 10 withdrawal of its 2026 revenue guidance and a warning in its latest quarterly filing that substantial doubt existed about its ability to continue as a going concern.
TELA Bio reported $30.4 million in cash and cash equivalents as of June 30. The company expects the expense reductions to extend its cash runway into 2028.
Chief Executive Officer Heather Getz attributed the savings to the workforce reduction and “streamlining of external resources,” while maintaining spending on the company’s core products and sales priorities.
“We are focused on disciplined execution, strengthening the business, and creating a more efficient organization,” Getz said.
The company did not disclose how many of the eliminated positions are based at its headquarters in the Great Valley Corporate Center in Malvern.
The restructuring also coincides with a change in financial leadership. Roberto Cuca stepped down Aug. 31 as chief financial officer, chief operating officer, corporate secretary and principal financial officer after five years with the company.
TELA Bio classified Cuca’s departure as a termination without cause under his employment agreement. The company expects to enter into a separation agreement with him on the terms of that contract and plans to disclose it with its third-quarter filing.
Getz, who was recently appointed CEO, will also serve as principal financial officer. The company did not identify a permanent successor for Cuca’s other positions.
TELA Bio plans to provide further details about the cost reductions during its third-quarter earnings call in early November.
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