Vancouver biotech company QLT Inc. (TSX:QLT) this week announced it is cutting 146 staff, reducing its head count from 214 to 68, following a proxy battle in which a Danish venture capital firm seized control of the board of directors.
In February, Business in Vancouver reported QLT was offering a range of career incentives, including rental subsidies, in an effort to hire 55 new technicians, scientists and managers.
In a letter to shareholders, Jason Aryeh, QLT’s new chairman, cited the company’s hiring spree earlier this year as one of the reasons for the regime change.
“To understand why the board is taking this new direction, it is critical to understand why it was elected and how QLT’s previous strategic plan could have put the company in a precarious financial position,” he said.
“Our board was elected by concerned and frustrated shareholders, disquieted that the company’s spending and head count seemed to be inappropriate given the nature of its assets, size and focus. These shareholders were concerned that resources were being misallocated and frustrated because their concerns appeared to be ignored repeatedly.”
QLT CEO Bob Butchofsky will be among the 146 employees let go by the new board of directors, although he has agreed to stay on until the end of this month.
Other senior executives being fired include Linda Lupini, QLT’s senior vice-president of human resources, and Christopher Muller, chief commercial officer for QLT Ophthalmics Inc.
QLT shares were up 1.43% on Tuesday morning at $7.80 per share.
