(KRON) — Sangamo Therapeutics, a Bay Area biotech company centered around genomic medicines, will be laying off 40% of its workforce and shutting down its Brisbane headquarters. In a news release sent out Wednesday, announcing the moves were part of a “strategic transformation and a corresponding restructuring of operations and workforce reduction.”

The layoffs and closure are part of a broader cost savings initiative aimed at reducing the company’s annual operating expense by around 50%, the release said.

“The restructuring announced today represents a further step towards simplifying the Sangamo organization,” the release reads in part.

The restructuring will also see the January departures of two of the company’s top executives, Executive Vice President D. Mark McClung and Senior Vice President Jason Fontenot.

The restructuring and workforce reductions are part of an effort to reduce operating expenses from $240 to $260 million in 2023 to $115 to $135 million in 2024, the press release said. Sangamo said it expects to incur $8 to $10 million in one-time restructuring costs in the fourth quarter of 2023.

Sangamo Therapeutics is a biopharmaceutical company that creates genomic medicines for patients suffering from diseases for which existing treatments are either inadequate or nonexistent.