In a significant restructuring effort, genetic testing company 23andMe has revealed plans to lay off approximately 40% of its workforce, equating to around 200 positions. The move comes as the once-thriving company grapples with shrinking revenues and the fallout from a major data breach incident last year, where hackers exposed personal details of 6.9 million users.
The firm, known for its ancestry tracing and DNA insights, indicated that it will cease developing various therapies and instead concentrate on its consumer-based services. Co-founder and CEO Anne Wojcicki has acknowledged the need for substantial changes to restore profitability, particularly as the company's stock has plummeted over 70% in the past year.
23andMe anticipates facing one-time restructuring costs of $12 million—primarily for severance pay—but projects annual savings of $35 million as a result of these layoffs. "These tough decisions are vital to position 23andMe for long-term growth and stability in our core markets," said Wojcicki.
The company is currently evaluating the future of its stalled therapeutic projects, contemplating selling or licensing them. Although the organization once enjoyed fame among high-profile customers, including celebrities like Snoop Dogg and business mogul Warren Buffett, it now finds itself reassessing its place in the competitive genetic testing landscape.
