ATyr Pharma appointed a new finance chief and said it would lay off around 60% of its staff in an effort to conserve capital and prioritize the development of efzofitimod, its interstitial lung disease treatment candidate.

The company said its restructuring will cut operating expenses by about $13 million each year, starting in the fourth quarter.

In addition to the layoffs, aTyr said that Chief Financial Officer Jill Broadfoot is stepping down on Sept. 30. She will transition to a consultant for the company and be succeeded by Brandon Yaras, currency vice president of finance.

General Counsel Nancy Denyes is also stepping down on Sept. 30 to serve as a consultant, aTyr said.

Chief Executive Officer Sanjay Shukla said the restructuring positions the company to complete a phase 2 study for efzofitimod in systemic sclerosis-related interstitial lung disease, as well as to advance a phase 3 study for the drug in pulmonary sarcoidosis, pending feedback from the Food and Drug Administration.

"We remain confident in the potential of efzofitimod to become a meaningful therapy for patients with these forms of ILD, and these changes are essential to our ability to achieve that goal," Shukla said.

The company on Friday reported a second-quarter loss of $10.3 million, or 11 cents a share, compared with a loss of $19.5 million, or 22 cents a share, a year earlier. Analysts polled by FactSet had been expecting a loss of 12 cents a share.

Operating expenses fell to $10.9 million from $20.3 million. The company reported no revenue in the second quarter.