𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Biotechnology firm Novacyt has said it could axe about 40% of its workforce as part of a major restructuring.

The molecular diagnostics company, which has a base in Manchester, launched a consultation process on Monday.

It said it could cut up to 40% of its roughly 230-strong headcount as a result, which would impact about 90 workers.

It has not disclosed how many UK-based staff would be impacted.

The company, which is listed on London’s junior AIM market and in Paris, saw shares slide in early trading.

Novacyt added: “A further announcement will be released in respect of the outcome of the consultation process in due course.”

It said the proposed restructuring would cause the company to reduce its “annual cash burn” by up to £4 billion, once initiatives are complete.

The move would result in a restructuring charge worth up to roughly £1 million, the group added.

It told shareholders that the proposed restructuring is part of efforts to accelerate “its plans to focus and streamline its operations and cost base”.

It follows the successful launch of a number of new products over the past 18 months and the recent acquisition of Southern Cross Diagnostics.

Novacyt has offices in La Vesinet France, Singapore, the United States and Canada.