Werewolf Therapeutics, Inc. (NASDAQ:HOWL) announced a 64 % reduction in its workforce, eliminating roughly 200 employees across research, development and corporate functions. The company also disclosed a one‑time restructuring charge of about $4.1 million that will appear in its first‑quarter 2026 financial statements.
The board approved the workforce reduction on February 9, 2026, and the layoffs were expected to be substantially completed by February 13. The restructuring charge reflects severance obligations and other costs associated with the workforce cut.
On February 13, 2026, Timothy W. Trost resigned as chief financial officer. Michael Urban was appointed as the new Principal Financial Officer and Principal Accounting Officer, effective the same day. Urban brings experience from prior financial management roles in the life‑sciences sector.
The layoffs and charge are part of a broader effort to address the company’s liquidity challenges. Werewolf has a high cash burn rate and a Nasdaq minimum bid‑price deficiency letter, with a cash runway that extends into the fourth quarter of 2026 only if additional financing is secured. The restructuring is intended to extend that runway and reduce operating expenses.
Werewolf’s strategic focus remains on its INDUKINE pipeline, particularly the WTX‑124 and WTX‑330 programs. The company is actively seeking strategic partnerships for these programs to secure additional funding and accelerate development. The CFO resignation and new finance leader are expected to help navigate the company’s funding gap and manage the restructuring.
Investors reacted negatively to the announcement, citing the scale of the workforce reduction, the leadership change, and the company’s ongoing liquidity concerns. The Nasdaq deficiency notice and the high cash burn rate further amplified investor concern.
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