By The Canadian Press <\/p>\n
VANCOUVER - Canadian biotechnology company QLT Inc. is cutting its workforce by two-thirds, leaving it with 68 employees after a downsizing brought in by new leadership following a proxy battle waged by some of its shareholders. <\/p>\n
Among those leaving is Robert Butchofsky, who has been QLT's president and chief executive. He has agreed to stay until July 31 as part of the transition. <\/p>\n
The Vancouver-based company (TSX:QLT.TO - News) had been one of Canada's most successful biotechnology firms based on its treatment for a common form of age-related blindness. <\/p>\n
But sales of Visudyne have fallen and QLT has struggled in recent years to find another commercially successful product. <\/p>\n
As a result, QLT's new chairman says the company is cutting 146 of its 214 remaining jobs. <\/p>\n
He says the downsizing will reduce QLT's annual operating expenses by $45 million to $50 million in 2013. The downsizing will cost about $14 million to $17 million, mostly for severance and change-of-control payments. <\/p>\n
QLT's new board of directors has also authorized a payout of $100 million to its shareholders in a process known as a return of capital. <\/p>\n
\"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,\" QLT chairman Jason Aryeh said in a letter to shareholders publishes Monday. <\/p>\n
\"Our board was elected by concerned and frustrated shareholders, disquieted that the company's spending and headcount seemed to be inappropriate given the nature of its assets, size and focus.\" <\/p>\n<\/p>\n
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\nCanadian biotechnology developer QLT slashes workforce by two-thirds, CEO to depart<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"