In a significant corporate restructure, Kineta Inc. (NASDAQ:KA) has announced a workforce reduction of approximately 64%, impacting seven full-time employees. This move is part of the company's strategic exploration of alternatives, as detailed in a recent SEC filing.
The layoffs come with severance benefits, contingent upon the employees signing separation agreements, and are expected to incur around $241,000 in costs for the first quarter of 2024.
As part of these changes, Dr. Shawn Iadonato will step down as CEO effective March 1, 2024, but will remain on the company's Board of Directors. Dr. Iadonato's departure is accompanied by a separation agreement that includes a payment totaling $38,461.54 for accrued time off and wages.
Moreover, he has entered into a consulting agreement with Kineta, under which his unvested equity awards will continue to vest until the end of 2024.
Similarly, Pauline Kenny, the company's General Counsel and Secretary, will also leave her role effective March 1, 2024. Ms. Kenny's separation agreement provides for a payment of $25,000.00, and she will also continue to serve as a legal advisor to Kineta through a consulting agreement until the end of 2024, with her equity awards vesting during this period.
The company's filing with the SEC provides further details on the separation agreements, which are integral to the current restructuring efforts. The disclosure of these corporate changes reflects Kineta's ongoing strategic review process and its efforts to streamline operations. The information presented here is based on Kineta's recent SEC filing.
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