--- title: "ALX Oncology approves 30% workforce reduction" url: "https://aibio.space/news/alx-oncology-approves-30-percent-workforce-reduction-will-eliminate/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-03-05" section: "Distress" tickers: "NASDAQ:ALXO" source: "https://www.sec.gov/Archives/edgar/data/1810182/000095017025033504/alxo-20250228.htm" summary: "ALX Oncology's board approved a cut of about 30% of staff on Feb 28, 2025, and eliminates its president and chief scientific officer role. The company esti" --- By the aibio.space news desk. Sources - [ALX ONCOLOGY HOLDINGS INC Form 8-K filed March 5, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1810182/000095017025033504/alxo-20250228.htm) - [ALX ONCOLOGY HOLDINGS INC Form 10-K filed March 7, 2024: business overview and signatures (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1810182/000095017024027955/alxo-20231231.htm) [ALXO](https://aibio.space/companies/alx-oncology/) 2025-03-05 # ALX Oncology approves 30% workforce reduction, will eliminate president and CSO role Tickers [ALXO](https://aibio.space/companies/alx-oncology/) ALX Oncology's board approved a cut of about 30% of staff on Feb 28, 2025, and eliminates its president and chief scientific officer role. The company estimates about $2.2 million in severance and benefits for a lead drug that has not completed a pivotal trial. ## Key facts - **Company**: ALX Oncology Holdings Inc. (NASDAQ: ALXO) - **News type**: Distress - **Primary source**: [ALX ONCOLOGY HOLDINGS INC Form 8-K filed March 5, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1810182/000095017025033504/alxo-20250228.htm) *Old law books on library shelves. CC0, via rawpixel. The picture shows the field, not the companies named.* ALX Oncology Holdings said in a Form 8-K filed March 5, 2025, that its board approved on Feb 28 a reduction in its workforce of about 30%. The company ties the cut to pipeline prioritization, clinical development and a cash preservation strategy. It expects the reduction to be substantially completed by the end of May 2025. The filing estimates expenses of about $2.2 million for severance payments and employee benefits, mostly tied to research and preclinical development, and expects to recognize them in the first quarter of 2025. The filing does not name the programs that will be cut or the pipeline assets being deprioritized. It describes the cut only as part of pipeline prioritization. ## The president and chief scientific officer role The same filing says the position of President and Chief Scientific Officer will be eliminated effective in April 2025. The company thanked Jaume Pons, Ph.D., for his years of service. Under a severance and change in control agreement dated July 9, 2020, Pons is expected to receive a payment equal to his annual salary, plus COBRA coverage under the company's health, dental and vision plans for up to 12 months after his separation date. He remains eligible for certain other severance and change in control benefits under the agreement. The company also says Pons and ALX Oncology intend to sign a consulting agreement in customary form. It would have him provide transition consulting on an as-needed, hourly basis for up to one year after his separation. The filing ties the consulting arrangement to an orderly transition, and it gives no date for a successor to take over the scientific work. ## The lead drug and the cash position ALX Oncology describes itself as a clinical-stage immuno-oncology company based in South San Francisco, California. Its lead product candidate is evorpacept, a CD47 blocker in multiple Phase 1 and 2 clinical trials. The most recent annual report on file for the company is its 10-K for 2023, filed March 7, 2024. That report says evorpacept is substantially dependent on, and has not completed, a pivotal trial. It also says that no product candidate of the company has received regulatory approval. The 10-K reports cash, cash equivalents and investments of $218.1 million at Dec 31, 2023. It said that cash, together with its ability to draw down an additional $40 million of its term loan at its discretion, would fund operations into early 2026. That runway horizon was set in that 2024 filing, and the March 2025 8-K does not restate it. The debt is also a constraint. ALX Oncology's loan and security agreement is with Oxford Finance LLC, Oxford Finance Credit Fund II LP and Silicon Valley Bank, and the 10-K notes the agreement was most recently amended in December 2023. The same filing says a declaration by the lenders of an event of default could significantly harm the business. The 10-K also says that, apart from that loan, ALX Oncology has no committed external source of funds. ## What the cut does and does not show The cut reduces staff and removes a senior scientific post at a company whose business rests on one lead drug. The filing says the expenses are primarily related to research and preclinical development. It does not say how the reduction affects the evorpacept trials. The company's 2023 annual report also says the company expects to obtain further funding through equity offerings, debt financing and collaborations, which may dilute holders. The March 2025 filing does not update that statement, and it does not give a new cash runway, a financing plan or a timetable for the next readout. The 8-K gives no timeline for the next evorpacept data, and the 10-K says the drug has not completed a pivotal trial. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story ALXO ALX Oncology Holdings Inc. 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Cite as: aibio.space, "ALX Oncology approves 30% workforce reduction", 2025-03-05, https://aibio.space/news/alx-oncology-approves-30-percent-workforce-reduction-will-eliminate/