Werewolf Therapeutics Stock Rises Over 5% After Hours On Workforce Reduction, Including Executives
Synopsis
The company said that the decision to layoff 64% of its workforce was approved by its board of directions on Feb. 9.
- The workforce reduction will be “substantially completed” by Feb. 13.
- As part of the workforce reduction efforts, the company expects to incur a one-time charge of $4.1 million in the first quarter.
- CFO Timothy W. Trost and chief medical officer (CMO) Randi Isaacs will resign as part of the move.
Werewolf Therapeutics, Inc. (HOWL) has decided to reduce its workforce by 64% as it seeks to lower its operating costs, the company said in a filing with the Securities and Exchange Commission on Friday.
The company said that the decision was approved by its Board of Directors on Feb. 9, and the workforce reduction will be “substantially completed” by Feb. 13.
As part of the workforce reduction efforts, the company expects to incur a one-time charge of $4.1 million in the first quarter. The amount includes employee separation benefits, including severance and related benefits.
Shares of the company rose over 4% after hours after closing down 1% in the regular trading session.
CFO & CMO Exits
CFO Timothy W. Trost and chief medical officer (CMO) Randi Isaacs will resign as part of the move and are entitled to severance benefits including an amount equal to nine months of their base salary, Werewolf Therapeutics said.
However, both the executives will assist in aiding a transition of their responsibilities from time to time for up to six months.
The company also said on Friday that it is evaluating alternatives such as strategic partnerships for further development of its WTX-124 and WTX-330 INDUKINE programs. It sought to raise capital in the fourth quarter of 2025 as well as the first quarter of 2026 to fund operations and has engaged in investor discussions regarding pipeline and financing, it added.
However, the company said on Friday that there is no guarantee that any transaction would occur.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around HOWL stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.
HOWL stock has dropped 57% over the past 12 months.
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