In a bold move to navigate its financial challenges, 23andMe has announced plans to lay off 40% of its workforce, translating into about 200 jobs. This decision reflects the company’s struggle to maintain relevance within the competitive genetic testing market. Compounding these difficulties, 23andMe will also suspend development on various therapies it had previously been working on.
The drastic cutback comes against the backdrop of a cyberattack last year, which compromised personal information of approximately 6.9 million users, raising concerns over data security. Since then, the company’s stock has plummeted more than 70%, prompting co-founder and CEO Anne Wojcicki to seek ways to revitalize the struggling business.
Expected one-time expenses related to the layoffs are projected to be around $12 million (£9.3 million), which includes severance packages. However, the company is anticipating annual savings of approximately $35 million from this initiative. Wojcicki emphasized the necessity of these actions, stating the focus would now be on the long-term health of the consumer business and ongoing research collaborations.
As part of this restructuring, 23andMe is evaluating the future of its therapeutic projects, with options including potential licensing or the sale of these developments. The firm, once a key player in the ancestry testing landscape, offers insights into genetic makeup and health via consumer-friendly DNA analysis. Notably, the clientele of 23andMe includes high-profile individuals, from entertainment mogul Snoop Dogg to investment titan Warren Buffett, underscoring its previous status as a leader in the industry.
