In a significant move, Atara Biotherapeutics has revealed plans for a substantial workforce reduction, marking the second such action this year. According to a recent SEC filing on March 3, the company intends to cut approximately 50% of its staff. This decision follows earlier setbacks in January, including the suspension of two key CAR T programs. With these reductions, Atara is expected to have around 40 employees remaining by June. The biotech firm, headquartered in Thousand Oaks, California, also operates a facility in Aurora, Colorado, but has not specified which locations will be affected by the cuts.

The strategic realignment at Atara comes in response to several challenges faced by the company. In early January, the FDA rejected Atara's drug Ebvallo due to unresolved manufacturing concerns. Shortly after, the FDA placed a clinical hold on Atara’s investigational new drug applications, affecting both Ebvallo and the ATA3219 program. These actions led to the discontinuation of all clinical studies for ATA3219, an allogeneic anti-CD19 CAR T cell therapy that was being evaluated for non-Hodgkin’s lymphoma and systemic lupus erythematosus.

The financial impact of these decisions cannot be overlooked. As of September 30, 2024, Atara reported a net loss of $72.7 million for the first nine months of the year, with an accumulated deficit of $2 billion. Despite these challenges, the company maintains a focus on its pipeline of next-generation allogeneic CAR T therapies for hematological malignancies and solid tumors. Additionally, Atara is exploring various strategic alternatives, including potential acquisitions, mergers, or asset sales, signaling a possible shift in its future direction.

The latest round of workforce reductions is expected to cost the company approximately $3 million in severance and related benefits. However, Atara anticipates additional charges as it continues to streamline operations. While the road ahead may be uncertain, the company remains committed to advancing its innovative therapies and addressing the challenges it faces. The restructuring efforts aim to position Atara for long-term sustainability and growth in the competitive biotech landscape.