40% gone at EnteroMedics (Oct 2009) Less than a month after announcing its medical device was shown to be ineffective in a key clinical trial, EnteroMedics Inc. is slashing its work force by 40%.
The Roseville-based company, which is developing medical technology to treat obesity, said Thursday the move will leave it with 33 employees. The layoffs are effective Nov. 15.
The company is continuing to evaluate the results of the study, which found that patients treated with the device lost roughly the same amount of weight as those treated with a placebo.
The cuts will reduce EnteroMedics' operating expenses by about $3.2 million in 2010.
Employees have been offered severance.