TLDR: French biotech unicorn Owkin is undergoing a significant strategic shift towards AI agents, leading to plans for cutting 40-50 roles out of 325 staff through a voluntary departure process. This transition has sparked considerable criticism from current and former employees regarding ‘huge managerial issues,’ a lack of transparency, and poor communication, despite CEO Thomas Clozel acknowledging imperfections in HR handling. The company is also considering spinning out its diagnostics department.
Paris, France – Owkin, the French biotech unicorn founded in 2016, is navigating a turbulent period marked by a major strategic pivot to AI agents and a planned reduction in its workforce. The company, which has successfully raised over $300 million from prominent investors including Sanofi and Cathay Innovation, is reportedly planning to cut between 40 and 50 roles from its 325-person staff through a ‘rupture conventionnelle collective’ (RCC), a voluntary departure process under French labor law.
This strategic shift follows the unveiling of ‘Owkin K’ three months prior, an agentic AI platform designed to serve as a copilot for medical researchers. This new direction marks a departure from Owkin’s previous business model, which primarily relied on multi-year contracts providing AI services to pharmaceutical companies for improving clinical trials and identifying new treatments.
However, the transition has not been smooth, drawing sharp criticism from a number of current and former employees. Concerns revolve around what staff describe as ‘huge managerial issues,’ a ‘huge lack of transparency,’ and ‘disorderly shifts’ in company direction. One former employee lamented, ‘The only certainty is that after a reorganisation, there will be another,’ highlighting a perceived lack of consistent strategy. Another employee stated, ‘Owkin doesn’t know what it wants to do and keeps changing,’ pointing to a ‘lack of visibility when it comes to the strategy.’ Employees also reported that changes occurred ‘with great violence’ and were accompanied by poor communication from leadership.
Owkin CEO Thomas Clozel has acknowledged the internal challenges, admitting that the company has not ‘been perfect’ at handling HR issues. Despite the criticisms, some employees suggest that such reorganizations are typical for a rapidly evolving company like Owkin in a fast-moving industry. The company confirmed to Sifted that it has ‘reached out to the CSE (the French employee counsel) to discuss a potential project of voluntary departure via a RCC.’
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In addition to the workforce adjustments, Owkin is also reportedly discussing the potential spin-out of its diagnostics department, which focuses on developing AI-powered tools for pathology diagnosis. While there has been some turnover, with 51 permanent employees leaving and 51 joining in 2024, Owkin’s overall workforce numbers have remained stable at 325. Some departures were attributed to employees receiving more attractive offers in a competitive market for AI talent.
