IO Biotech (IOBT) launches restructuring, CMO exit and up to $2.6M charges

Rhea-AI Filing Summary

IO Biotech, Inc. reported that its board approved a restructuring and workforce reduction plan intended to significantly cut operating expenses while the company explores a range of strategic alternatives. The plan is expected to result in a significant global reduction of the company’s workforce.

The company expects to incur one-time charges and cash expenditures of approximately $2.4 million to $2.6 million, mainly for wages, severance, healthcare continuation, earned vacation and related termination costs, primarily during the first quarter of 2026. IO Biotech also notified Chief Medical Officer Qasim Ahmad, M.D., a named executive officer, that his employment will end on February 15, 2026.

The company announced it has retained Raymond James & Associates, Inc. as exclusive financial advisor to assist in its ongoing exploration of strategic alternatives, and issued a press release describing the restructuring and workforce reduction plan, which is attached as an exhibit.

Positive

• None.

Negative

• Significant restructuring with executive departure: IO Biotech approved a global workforce reduction plan with one-time charges of $2.4 million to $2.6 million, and its Chief Medical Officer, a named executive officer, will leave the company effective February 15, 2026.

Insights

Biotech equity analyst

IO Biotech initiates cost-cutting, executive exit and formal strategic review support.

IO Biotech, Inc. is implementing a restructuring and workforce reduction plan designed to significantly reduce operating expenses while it explores strategic alternatives. The company expects one-time charges of $2.4 million to $2.6 million, largely related to severance, benefits and other termination costs, primarily in Q1 2026.

The filing notes that the workforce reduction will be significant globally and that Chief Medical Officer Qasim Ahmad, M.D., a named executive officer, will leave effective February 15, 2026. For a clinical-stage biotech, a CMO departure alongside broad cuts may affect development priorities and internal capabilities, depending on how responsibilities are reassigned.

The company has retained Raymond James & Associates, Inc. as exclusive financial advisor to assist its previously announced exploration of strategic alternatives. This formalizes external advisory support for potential transactions or other options. Actual outcomes and any resulting changes will depend on future decisions and are not described in this excerpt.

false 0001865494 0001865494 2026-01-30 2026-01-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 30, 2026

IO BIOTECH, INC.

(Exact name of Registrant as Specified in its Charter)

Delaware		001-41008		87-0909276
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

Ole Maaløes Vej 3

DK-2200 Copenhagen N

Denmark

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: +45 7070 2980

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		IOBT		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05. Costs Associated with Exit or Disposal Activities.

As part of previously announced efforts by IO Biotech, Inc. (the “Company”) to reduce the Company’s operating expenses while the Company explores a range of strategic alternatives, the Board of Directors of the Company approved on January 21, 2026, a restructuring and workforce reduction plan (the “Plan”) which is expected to result in a significant reduction of the Company’s workforce globally.

In connection with the implementation of the Plan, the Company expects to incur one-time charges and cash expenditures in a range of approximately $2.4 million to $2.6 million, primarily related to employee wages and severance payments, healthcare continuation, earned vacation time and related termination costs. The Company expects to incur these charges primarily during the first quarter of 2026.

The actual timing and amount of these charges may differ from the Company’s current estimates due to a variety of factors, including the finalization of severance terms, jurisdiction-specific legal requirements, and the pace of transition activities. The Company may also incur additional non-material charges in future periods related to the Plan.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

As part of the Company’s previously announced efforts to significantly reduce the Company’s operating expenses while the Company explores a range of strategic alternatives, on January 28, 2026, the Company notified Qasim Ahmad, M.D., the Company’s Chief Medical Officer and a named executive officer, that his employment with the Company would end effective as of the close of business on February 15, 2026.

Item 8.01. Other Events

On January 30, 2026, the Company issued a press release announcing that it has retained Raymond James & Associates, Inc. to serve as exclusive financial advisor to assist the Company in its previously announced exploration of strategic alternatives. The Company also announced a restructuring and workforce reduction plan which is expected to result in a significant reduction of the Company’s workforce globally to reduce the Company’s operating expenses while the Company explores strategic alternatives.

A copy of the Company’s press release is filed with this Report as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Exhibit Description
99.1		IO Biotech, Inc. Press Release, dated as of January 30, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				IO BIOTECH, INC.
Date: January 30, 2026				By:		/s/ Mai-Britt Zocca, Ph.D.
				Name:		Mai-Britt Zocca, Ph.D.
				Title:		Chief Executive Officer

FAQ

What restructuring actions did IO Biotech (IOBT) announce in this 8-K?

IO Biotech announced a restructuring and workforce reduction plan expected to significantly reduce its global workforce. The plan is part of broader efforts to cut operating expenses while the company explores strategic alternatives, and will involve severance, benefits, and related termination costs.

How much will IO Biotech (IOBT) spend on its workforce reduction plan?

IO Biotech expects one-time charges and cash expenditures of about $2.4 million to $2.6 million. These amounts primarily cover employee wages and severance, healthcare continuation, earned vacation time, and other termination-related costs, with most charges anticipated during the first quarter of 2026.

Which executive is leaving IO Biotech (IOBT) as disclosed in the filing?

The company reported that Qasim Ahmad, M.D., its Chief Medical Officer and a named executive officer, was notified his employment will end. His departure becomes effective at the close of business on February 15, 2026, in connection with the broader cost-reduction efforts.

Why did IO Biotech (IOBT) hire Raymond James & Associates, Inc.?

IO Biotech retained Raymond James & Associates, Inc. as its exclusive financial advisor. The firm will assist the company in its previously announced exploration of strategic alternatives, supporting evaluation of possible options as IO Biotech works to reduce operating expenses.

When will IO Biotech (IOBT) recognize the restructuring charges?

The company expects to incur most of the one-time restructuring and workforce reduction charges during the first quarter of 2026. It notes that actual timing and amounts may vary based on final severance terms, legal requirements in different jurisdictions, and the pace of transition activities.

What additional costs might IO Biotech (IOBT) face from this plan?

Beyond the estimated $2.4 million to $2.6 million in one-time charges, IO Biotech states it may incur additional non-material charges in future periods. These would relate to the restructuring and workforce reduction plan as remaining transition and implementation activities are completed over time.