Vancouver-based AbCellera laying off 10% of staff

Vancouver-based biotech firm AbCellera will be laying off 10% of its workforce amid inflation and rising interest rates that are dragging on the Canadian economy.

The company revealed its plans to cut staff in a filing to the US Securities and Exchange Commission.

The layoffs come three years after AbCellera shocked the region with its smash-hit initial public offering, netting $556 million when it went public, more than double its expected $250 million.

The company is currently building a new campus for its workers and a new headquarters, a project for which it received $300 million in government funding earlier this year.

AbCellera expects the layoff and restructuring process will cost about $3.4 million. It currently has approximately $1.4 billion in liquidity, estimating it has enough cash to achieve its goals beyond the layoffs.

According to its latest financial reports, released November 8, AbCellera generated a net income of $27 million in the last three months, a change from last year when it reported a net loss of $21 million during the same time period.

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Editor’s note: A previous version of this article incorrectly said AbCellera expects to spend $340 million on restructuring. It has been updated to reflect the actual estimate of $3.4 million.