Another high-tech innovator is set to leave California this year as Cargo Therapeutics confirmed on March 18 that it is winding down operations.

The biotechnology company was developing “next-generation cell therapy cures” for cancer patients, one of which was designed to address several known causes of cancer relapse in patients, according to Cargo Therapeutics.

Cargo is scheduled to close on May 19, according to a notice filed Wednesday with the state. 

The company plans to permanently lay off 84 employees at the San Carlos, California, location, about 25 miles south of San Francisco.

The staff reduction is expected to cost from $24 million to $29 million this year from severance pay, benefits, payroll taxes, and other costs set to reach up to $14 million, the company reported in a U.S. Securities and Exchange Commission filing.

According to Cargo Therapeutics, the company’s board of directors decided to suspend development efforts for some cancer therapies and reduce its workforce by 90 percent.

“In connection with the Company’s review of strategic options, the Board has concluded that it is in the best interests of shareholders to cease development operations,” said board chairman John Orwin.

“We are grateful for the contributions of those who will be leaving CARGO as a result of the decision to discontinue development of our remaining pipeline assets.”

Orwin said the company plans to prioritize shareholder value and find a permanent home for its remaining assets, which will benefit patients.

As of Dec. 31, 2024, Cargo Therapeutics cash on hand totaled $368 million.

The company reported that it has appointed Anup Radhakrishanan as interim CEO to lead it through a reverse merger or other possible business combination.

Cargo has hired TD Cowen, a global investment and financial services company, as its financial adviser during the reduction.

The biotech firm joins other tech companies that have left the state since 2020.

'The X logo on the top of the headquarters of social media platform X in downtown San Francisco on July 30, 2023. The company relocated to Bastrop, Texas, in 2024. (Carlos Barria/REUTERS File Photo)

Elon Musk’s Tesla, which also originated in San Carlos in 2003, relocated its headquarters to Austin, Texas, in 2021.

Musk also relocated X, formerly Twitter, from its San Francisco headquarters to Bastrop, Texas, in July 2024.

Oracle, a well-known database management company, also left the Bay Area after four decades, moving its corporate headquarters to Austin in 2020.

Real estate brokerage giant CBRE, which was founded in San Francisco and headquartered in Los Angeles, moved to Dallas in 2020.