23andMe, the well-known DNA testing firm, is officially implementing a significant workforce reduction of 40% as part of its strategy to navigate through financial difficulties.
23andMe Announces Major Workforce Reductions Amid Ongoing Challenges
23andMe Announces Major Workforce Reductions Amid Ongoing Challenges
Genetic Testing Company Faces Significant Struggles With Layoffs and Halted Therapeutics Development
The struggling genetic testing company 23andMe has announced plans to eliminate 40% of its workforce, equating to approximately 200 employees, as part of broader efforts to stabilize its operations. In conjunction with the layoffs, the firm will cease development on various therapies it had previously pursued. This news follows a turbulent year for the company, marked by a sharp decline in its share price—over 70%—and a data breach incident that exposed personal information of nearly 6.9 million users to hackers.
Co-founder and CEO Anne Wojcicki acknowledged the tough measures in a statement, emphasizing the necessity of restructuring to ensure the long-term viability of their core consumer and research-focused initiatives. Alongside the layoffs, the company predicts initial costs of around $12 million, accounting for severance and alignment with their $35 million savings goals.
While aiming to rebuild its brand in the burgeoning ancestry-tracing market, 23andMe is also contemplating various options for its halted therapies, including potential licensing or sales. Historically, the company has catered to a diverse clientele, including high-profile individuals such as hip-hop star Snoop Dogg and investor Warren Buffett.
Despite the challenges ahead, Wojcicki reinforces a focus on adapting the business model towards sustainable growth in genetic testing and associated research partnerships to secure future success.
Co-founder and CEO Anne Wojcicki acknowledged the tough measures in a statement, emphasizing the necessity of restructuring to ensure the long-term viability of their core consumer and research-focused initiatives. Alongside the layoffs, the company predicts initial costs of around $12 million, accounting for severance and alignment with their $35 million savings goals.
While aiming to rebuild its brand in the burgeoning ancestry-tracing market, 23andMe is also contemplating various options for its halted therapies, including potential licensing or sales. Historically, the company has catered to a diverse clientele, including high-profile individuals such as hip-hop star Snoop Dogg and investor Warren Buffett.
Despite the challenges ahead, Wojcicki reinforces a focus on adapting the business model towards sustainable growth in genetic testing and associated research partnerships to secure future success.
