Layoffs latest financial setback for new Minnesota public company Lifecore Biomedical

Lifecore Biomedical is cutting jobs for 46 full-time employees, 9% of the company’s workforce, amid ongoing challenges including tens of millions of dollars in losses last year.

Chaska-based Lifecore, which makes injectable pharmaceuticals, disclosed the layoffs in a filing with the U.S. Securities and Exchange Commission (SEC) Friday, citing the move as “part of an initiative to strategically optimize the company’s cost structure.”

The company indicated it would pay $1 million in severance benefits. A Lifecore representative was not reachable for comment.

Paul Josephs became Lifecore’s new CEO in May following the retirement of James Hall.

In March, Lifecore filed a long-delayed annual financial report for its fiscal year ending May 28, 2023. The document included financial restatements of the company’s 2021 and 2022 fiscal years. NASDAQ notified the company in February about a possible delisting due to delays in the financial filings.

Lifecore disclosed at the time the SEC’s Chicago Regional Office issued a subpoena related to the restatements.

“The company is in the process of responding to the subpoena and intends to cooperate with the SEC,” the company said. “We cannot predict the duration or outcome of this matter at this time.”

In March 2023, Lifecore announced plans to explore strategic alternatives, which it ultimately did not pursue.

The company reported a net loss of $99.6 million on sales of $103.3 million in fiscal year 2023.

Founded locally in the 1960s, California-based Landec, a publicly traded company, previously owned Lifecore. In 2022, Landec renamed itself Lifecore and relocated the company headquarters to Chaska, Lifecore’s longtime base of operations.

Lifecore stock closed down 2.9% Friday.