Bluebird Bio (BLUE.US), a US gene therapy company, has launched a restructuring plan, which includes cutting 25% of its workforce.

Bluebird Bio (BLUE.US), a US gene therapy company, said it plans to cut about a quarter of its workforce as the biotechnology company faces a difficult environment for gene therapy companies, an expensive one-time treatment for hard-to-treat diseases.

The Massachusetts-based company said in a statement the move was part of a restructuring that it expects will allow the company to focus on launching new products and reduce its cash operating expenses by 20% in the third quarter of next year. According to a filing earlier this month, Bluebird had about 375 employees.

Known for more than a decade as a pioneer in gene therapy, focusing on serious genetic diseases, Bluebird was recognized for bringing gene therapy from clinical studies into the commercial market, with three of its therapies approved by the FDA in less than two years.

However, despite nearly two-dozen gene therapies approved in the US for diseases including sickle cell disease and hemophilia, the high cost of treatment, which can run into the millions of dollars, and other factors have slowed the widespread adoption of the therapies. Bluebird has struggled to turn gene therapy into a successful business and said it has "substantial doubt" about its ability to continue operating.

Bluebird's stock rose 1.80% before the market opened on Tuesday. In the past 12 months, the company's market value has evaporated by 84%.

"We are taking decisive action to optimize our cost structure to enable the company to attract the additional capital needed to unlock the significant commercial opportunities in front of us," CEO Andrew Obenshain said in the statement.