DNA-testing site 23andMe is slashing its workforce by 40%
23andMe, a leading name in the genetic testing business, has revealed plans to lay off some 200 employees, or nearly 40% of its entire workforce. The move comes as the company continues to face major financial issues. The firm's share price has plummeted by more than 70% this year alone, reflecting a major decline in its market performance.
Company halts work on therapies
Along with the layoffs, 23andMe has also put its efforts toward developing new therapies on hold. The company is now assessing potential options for these in-development therapies, including either licensing or selling them off. This strategic shift is part of a larger plan to restructure the business and focus on its core consumer services and research partnerships.
Restructuring costs and projected savings
The restructuring process is likely to incur one-time costs of about $12 million, including severance packages for the laid-off employees. However, 23andMe expects that these measures will eventually save them as much as $35 million. The company's CEO, Anne Wojcicki, has said that these tough decisions are necessary for the long-term success of their core business.
Data breach and board resignations add to woes
23andMe's woes were further exacerbated by a data breach last year, wherein hackers gained access to personal information of nearly 6.9 million users. The breached data comprised family trees, birth years, and geographic locations but not DNA records. Additionally, seven out of eight board members resigned in September after not getting a satisfactory buyout offer from Wojcicki, further adding to the company's woes.
