In a significant move, the DNA-testing company 23andMe announced it will lay off 40% of its employees, equating to approximately 200 jobs, as it navigates financial challenges and shifts its focus back to its core consumer products and research partnerships.
23andMe to Cut 40% of Workforce Amid Survival Struggle
23andMe to Cut 40% of Workforce Amid Survival Struggle
DNA-testing pioneer halts therapy development and restructures for future stability.
23andMe, once a leader in genetic testing and ancestry tracing, is reeling from a series of setbacks, including a data breach last year that compromised the personal information of nearly 6.9 million users. As part of its restructuring efforts, the company will halt the development of various therapies and anticipates incurring about $12 million in one-off costs, which includes severance payments.
The company’s share price has plummeted by over 70% in 2023, leading co-founder and CEO Anne Wojcicki to implement these tough decisions aimed at reviving the company’s fortunes. Wojcicki stated, “We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships.”
In addition to layoffs, 23andMe is contemplating options for its halted therapy projects, potentially exploring licensing or selling these initiatives. The firm, which claims a customer base including notable figures like rapper Snoop Dogg and investor Warren Buffett, has been striving to maintain its stature in a rapidly evolving industry.
Despite the turmoil, 23andMe remains a substantial player in the ancestor-tracing market, providing genetic testing for ancestry breakdown and personalized health insights to its subscribers. The company is working to regain the trust of its users while adjusting to the pressures of the market and technological advancements.
The company’s share price has plummeted by over 70% in 2023, leading co-founder and CEO Anne Wojcicki to implement these tough decisions aimed at reviving the company’s fortunes. Wojcicki stated, “We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships.”
In addition to layoffs, 23andMe is contemplating options for its halted therapy projects, potentially exploring licensing or selling these initiatives. The firm, which claims a customer base including notable figures like rapper Snoop Dogg and investor Warren Buffett, has been striving to maintain its stature in a rapidly evolving industry.
Despite the turmoil, 23andMe remains a substantial player in the ancestor-tracing market, providing genetic testing for ancestry breakdown and personalized health insights to its subscribers. The company is working to regain the trust of its users while adjusting to the pressures of the market and technological advancements.
