By Eric Fetters
Herald Writer
BOTHELL – Eden Bioscience Corp. is cutting 20 positions – nearly one-quarter of the company’s staff – in an attempt to reduce operating expenses.
The layoff affects 13 people in the Bothell headquarters. The rest of the affected employees work for the company in Europe.
Eden is developing and manufacturing natural protein-based products to improve and protect crops. Its first commercially approved product, Messenger, gained federal approval two years ago but has sold slowly so far in the depressed agricultural market.
“I’m still encouraged with the progress in Messenger sales,” said Brad Powell, Eden’s chief financial officer and interim president. “But nonetheless, we need to get our expenses more in line with our sales, as difficult as that is when you have to make reductions.”
The layoffs, which leave Eden with 66 full-time employees, will affect all areas of the company except sales, Powell said. In Europe, the company will continue working with key accounts, but other work there will be significantly curtailed.
Severance pay for laid-off employees and other expenses related to the staff reduction will force Eden to take a $250,000 charge for the quarter, he said.
Last month, Eden’s outlook improved when the company announced that sales of Messenger had helped reduce losses during the first quarter. The fourth quarter of 2001 saw no sales of the crop treatment.
The company said it had $41.5 million at the end of the first quarter, enough cash to fund operations for at least the next 18 months if expenses are kept in check.
The layoffs were announced after the close of the markets on Wednesday, when Eden’s stock closed at $2.84, compared to a 52-week high of $21.90.
You can call Herald Writer Eric Fetters at 425-339-3453
or send e-mail to fetters@heraldnet.com.
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