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Some two years after splitting biotech company Bluebird Bio into two entities in a bid to “sharpen their focus” and improve operations, the spinout focused on oncology treatments announced major cost cuts and is parting ways with its chief executive.

The spinout, 2Seventy Bio, announced Tuesday that it is cutting approximately 40% of its workforce, or about 176 employees. It also plans to allocate less money to a couple of drug candidates, including one that is currently on hold with the Food and Drug Administration. The cuts extend the company’s cash runway into 2026.

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The company was formed in 2021 when the team behind Bluebird Bio decided to split its drug pipeline down the middle. The company was wrestling with its gene therapy portfolio, including getting approval for a gene therapy for the blood disorder beta thalassemia in the U.S. Separately, it had a basket of cancer drug candidates and a partnership with pharma company Bristol Myers Squibb that needed attention. So, Bluebird split its operations in two, with longtime CEO Nick Leschly taking the helm at the new firm.

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