IO Biotech has reduced its workforce by 50% after the FDA recommended against submitting an approval application based on failed Phase 3 melanoma trial data for their therapeutic vaccine Cylembio. Despite top-line failure, IO remains committed to pursuing regulatory approval with new studies and discussions planned in both the US and EU. The layoffs form part of a capital conservation strategy as cash reserves approach exhaustion by early 2026. The company continues to explore alternative paths to bring its innovative off-the-shelf vaccine platform to market.