PDS Biotechnology to cut about 36% of workforce, removes Chief Operating Officer

PDS Biotechnology Corporation (Nasdaq: PDSB) said a reduction in force is expected to affect approximately 36% of its workforce and that it has removed its Chief Operating Officer. The company disclosed both moves in a Form 8-K filed August 25, 2026, under Items 2.05 and 5.02. Frank Bedu-Addo, Ph.D., President and Chief Executive Officer, signed the filing.

The reduction in force

The Board of Directors approved the reduction on August 6, 2026. PDS says the step is part of its efforts to align operating expenses with its strategic priorities, including the advancement of PDS0301. The company began carrying out the plan and notified affected employees on August 21, 2026. It expects to substantially complete the reduction in the third quarter of 2026.

PDS estimates a one-time charge in the third quarter of approximately $842,000 for employee separation benefits, including severance and related benefits. The filing says all of that amount is expected to be paid in cash and recognized in the same quarter. The company also says it may incur costs it has not yet contemplated, and that actual results may differ materially from the estimates, which rest on a number of assumptions.

Chief Operating Officer departs

On August 21, 2026, the company delivered a notice of termination without cause to Stephan Toutain and removed him from the Chief Operating Officer position. Toutain is entitled to severance under his employment agreement once he signs a separation agreement and general release of claims. The severance has two parts: an amount equal to 12 months of base salary, paid in installments on regular payroll dates, and company contributions toward continuation of health coverage under the Consolidated Omnibus Budget Reconciliation Act for 12 months. The health contributions end earlier if he becomes eligible for substantially equivalent coverage through new employment or his COBRA eligibility expires.

Going concern doubt in the annual report

The company's annual report, filed March 30, 2026, says PDS is a clinical-stage immunotherapy company. Its pipeline is built on the Versamune T cell activator, on Versamune combined with its interleukin 12 fused antibody drug conjugate, PDS01ADC, and on the Infectimune T cell activator for infectious diseases. The 10-K calls PDS01ADC the company's former name for PDS0301. Its PDS0101 (Versamune HPV), is in the VERSATILE-003 Phase 3 trial in HPV16-positive first-line recurrent or metastatic head and neck squamous cell carcinoma, which the company announced in March 2025.

The more serious item is the going concern conclusion. The company says it has identified conditions and events that raise substantial doubt about its ability to continue as a going concern. The 10-K says that, given the uncertainty in securing additional funding and the insufficient amount of cash and cash equivalents as of December 31, 2025, substantial doubt exists about its ability to continue as a going concern within one year. The auditor's report carries a going concern paragraph that points to Note 3 for management's plans.

The money behind the cut

The company's financial data show a net loss of $34.5 million for 2025 and a net loss of $37.6 million for 2024. It used $27.8 million in operations in 2025, against $35.0 million in 2024. Cash and cash equivalents were $26.7 million at the end of 2025 and $5.6 million at June 30, 2026, according to the company's filings.

What the cut means

The 8-K does not give a figure for the cash the company has after the charge, and it does not say whether the reduction changes the timing of the trials described in the 10-K. The 8-K also does not mention the going concern conclusion. That conclusion is in the annual report filed in March, so the cut takes place with the auditor already questioning whether the company can keep operating for the next year.

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