ReShape Lifesciences to Slash Workforce to Cut Costs

ReShape Lifesciences is cutting its workforce to reduce costs. The company offers weight-loss and metabolic health solutions, including the Lap-Band System, Diabetes Bloc-Stim Neuromodulation (DBSN) system, Obalon balloon technology, and ReShape Calibration tubes. The Lap-Band 2.0 is a minimally invasive long-term treatment for severe obesity. ReShape Lifesciences aims to manage and treat obesity and metabolic disease.

ReShape Lifesciences Inc. (NASDAQ:RSLS), a micro-cap medical device company with a market capitalization of approximately $5.9 million, has announced a strategic workforce reduction aimed at saving over $750,000 annually. This reduction represents approximately 23% of the company's wage expenses [1].

The company, which specializes in weight loss and metabolic health solutions, including the FDA-approved Lap-Band System, Diabetes Bloc-Stim Neuromodulation (DBSN) system, Obalon balloon technology, and ReShape Calibration tubes, has stated that its sales and marketing team will remain intact. The company continues its digital marketing campaigns and international expansion efforts in Canada through its distribution agreement with Liaison Medical for the Lap-Band 2.0 FLEX [1].

ReShape Lifesciences has also reported progress toward finalizing its previously announced merger agreement with Vyome Therapeutics and an asset sale to Biorad Medisys. A special shareholder meeting to vote on these transactions has been scheduled for July 24, 2025 [1].

"This action positions us to operate more efficiently while preserving our core capabilities," said Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences, in a press release. The company's board of directors has unanimously endorsed these transactions, describing them as a "transformative opportunity" that could potentially create long-term value for shareholders [1].

The workforce reduction comes amid a market influenced by GLP-1 receptor agonists like Ozempic and Zepbound, which ReShape acknowledged as having a potential "positive long-term impact on the broader obesity treatment landscape" [1].

ReShape Lifesciences has made several notable announcements recently. The company revealed its Diabetes Neuromodulation technology has been granted an Australian patent, extending protection until April 2039. Additionally, the company has increased its stockholders’ equity above the Nasdaq minimum requirement by raising approximately $6.28 million through recent stock offerings [1].

The company continues to focus on its strategic efforts to raise capital and expand its market reach. It has signed an exclusive U.S. distribution agreement with Recon Supply, which will distribute its medical devices across Veterans Administration and Department of Defense healthcare systems. Furthermore, ReShape announced the pricing of a public stock offering at $2.50 per share, aiming to raise about $2.6 million before expenses [1].

The strategic workforce reduction and ongoing transactions signal a comprehensive approach to managing costs and pursuing growth opportunities in the face of industry disruption.

References:
[1] https://www.investing.com/news/company-news/reshape-lifesciences-cuts-workforce-to-save-750k-annually-93CH-4112707
[2] https://www.stocktitan.net/news/RSLS/re-shape-lifesciences-announces-strategic-cost-reductions-and-7aa3ikso34zr.html