bluebird bio Inc., a gene therapy company, has announced a restructuring plan aimed at optimizing its cost structure and achieving quarterly cash flow break-even in the second half of 2025. The restructuring is expected to result in a 20% reduction in cash operating expenses by the third quarter of 2025 compared to the previous reporting period.  
 
The initiative also includes a workforce reduction of approximately 25%. To achieve cash flow break-even, bluebird anticipates scaling drug product deliveries to approximately 40 per quarter, realizing the 20% reduction in cash operating expenses, and securing additional cash resources to extend its cash runway.
 
“bluebird has set the standard for gene therapy for more than a decade, and we continue to lead the field in the commercial setting with three potentially transformative FDA-approved therapies,” said Andrew Obenshain, CEO, bluebird bio. “Today we are taking decisive action designed to optimize our cost structure and position the company to attract the additional capital required to unlock the significant commercial opportunity before us. The decision to reduce our workforce in support of a more focused set of priorities was made following a detailed review of the needs and capabilities of our organization, and we are grateful to every bluebird who has helped realize our founding vision of making gene therapy a reality for patients and families impacted by severe genetic diseases.”
 
As part of the restructuring, bluebird will concentrate on the ongoing commercial launches of LYFGENIA, ZYNTEGLO, and SKYSONA. The company is also exploring opportunities to increase its cash resources. Year-to-date, there have been 41 patient starts across bluebird’s portfolio, up from 27 reported in mid-August. The company anticipates approximately 40 patient starts in the fourth quarter of 2024.
 
This news comes months after the company named O. James Sterling as its Chief Financial Officer.