Evofem Biosciences, a publicly traded company (OTCQB: EVFM) that develops innovative products for women’s health, has announced measures to reduce its operating expenses. The company aims to achieve cash flow break-even by the end of 2023.
The measures to reduce costs include a significant cut in payroll expenses, with the company reducing salaries for some employees. The Chief Executive Officer’s compensation will be reduced by 40%, while other continuing members of the executive team will see a 20% reduction in pay compared to prior year levels.
Additionally, the company plans to consolidate three sales territories and eliminate eight office and management positions, including the Chief Commercial Officer role, effective March 17, 2023. The reduction in force is expected to be substantially completed in the first quarter of 2023.
Saundra Pelletier, the CEO of Evofem Biosciences, acknowledged that the decision to restructure their already small workforce was a difficult one. “The team members who stay with the organization are united behind our common goals and worthy mission, and have the heart, head, and backbone to change women’s health forever,” said Pelletier.