Biotech company Nkarta announced significant workforce reductions on March 26, 2025, including the elimination of approximately one-third of its employees and more than half of its executive leadership team. The restructuring effort aims to extend the company’s operational runway into 2029 while focusing resources on advancing its
experimental cell therapy program for autoimmune conditions.
The strategic downsizing will affect 53 positions across the organization, with Chief Strategy and Business Officer Alyssa Levin departing effective March 31. Current president Nadir Mahmood will assume her responsibilities as principal financial and accounting officer.
CEO Paul Hastings emphasized that the restructuring decision reflects the challenging financial and competitive landscape facing the biotech sector. The company, which reported having 157 full-time employees and approximately $381 million in cash reserves as of December 31, recorded a net loss of around $109 million in 2024.
Originally founded with over $100 million in private funding, Nkarta went public in 2020 to develop donor-derived natural killer (NK) cell therapies. These treatments differ from existing personalized cancer cell therapies like Yescarta and Kymriah by utilizing NK cells rather than T cells. The company initially positioned its therapies as convenient, off-the-shelf alternatives to current treatments.
However, Nkarta encountered difficulties demonstrating that its lead therapy could achieve the same lasting benefits as personalized treatments. Amid a tough funding environment for biotechs, the company’s share price declined, complicating efforts to raise additional capital. This led to a strategic pivot in 2024, when Nkarta redirected its research focus entirely toward autoimmune conditions, building on academic research suggesting NK cell therapies could help restore normal immune system function in patients with diseases such as lupus.
In a January interview, Hastings acknowledged the changing landscape for drug development, noting that companies no longer have the flexibility to extensively test different treatment regimens in Phase 1 trials, as initial data releases have become increasingly critical.
Nkarta’s strategic shift places it among more than a dozen companies working to translate promising research into treatments using either cell therapies or antibody drugs. The company maintains that its approach offers unique advantages, combining the effectiveness of personalized cell therapies with the convenience of off-the-shelf availability. According to Chief Medical Officer David Shook, individualized cell therapies are impractical for autoimmune conditions, while popular antibody drugs like T cell engagers face both efficacy questions and safety concerns that limit their use in oncology.
The company has yet to validate its approach through human clinical trials. Key data from two ongoing studies evaluating its therapy, NKX019, in multiple autoimmune conditions are expected later this year, which could provide crucial evidence supporting the company’s strategic direction.
The restructuring announcement reflects broader challenges facing the biotech industry, where companies must carefully balance resource allocation with the pursuit of innovative therapeutic approaches. By implementing these significant organizational changes, Nkarta aims to maintain sufficient financial resources to advance its clinical programs while adapting to current market realities.