Bay Area biotech company cuts 55 jobs, blames Trump-era funding reductions
A Bay Area biotech company has laid off 55 employees, citing funding cuts linked to policies from the Trump administration — just three months after raising nearly $351 million in funding.
In a regulatory notice filed Wednesday, Eikon Therapeutics, based in Millbrae, confirmed that the layoffs would impact nearly 15% of its workforce. The cuts are set to take effect in July.
Eikon, known for its work in developing cancer treatments, explained that the job cuts were driven by a combination of government funding reductions and the cooling biotech sector.
'To be clear, these decisions were precipitated by external forces,' the company said Thursday in a LinkedIn post. 'For example, government funding cuts have constrained the budget of academic institutions, necessitating that we pause development of our advanced instruments intended for external researchers.'
Founded in 2021 to advance drug discovery through live-cell super-resolution microscopy, Eikon quickly attracted significant investment. The company raised a $517 million Series B round in 2022, followed by a $350.7 million Series D round in February.
'The market for these instruments has clearly evaporated,' the company's LinkedIn post continued. 'Similarly, with reduced investment in the global technology sector, prudence demands that Eikon sharpen its focus and generate efficiencies in our operations.'
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