23andMe Struggles: DNA-Testing Giant to Lay Off 40% of Workforce

The genetic testing company faces a steep decline in share prices and aims to restructure for better long-term growth.

In a drastic move to regain stability, 23andMe, the leading DNA-testing company, will reduce its workforce by 40%, resulting in approximately 200 job losses. This decision comes as part of a strategy to redirect its focus towards its core consumer services and collaborative research efforts.

Once considered a pioneer in the ancestry-tracing market, 23andMe has faced numerous challenges, including a significant data breach last year, when hackers accessed personal details of nearly 6.9 million users. Despite the breach not compromising DNA records, the exposure of sensitive information, such as birth years and family trees, raised serious concerns among its clientele, which includes high-profile individuals like rapper Snoop Dogg and investor Warren Buffett.

The company's share price has plummeted more than 70% this year, prompting CEO and co-founder Anne Wojcicki to implement tough but necessary reforms. She 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." The firm anticipates incurring one-off costs of $12 million, including severance for the affected employees, while hoping to save around $35 million through these layoffs.

Alongside the workforce reduction, 23andMe has decided to cease the development of its therapies, now weighing options such as licensing or selling the projects they had undertaken. As the company strives to navigate these tumultuous times, it remains dedicated to enhancing its primary offerings in genetic testing, ancestry breakdown, and personalized health insights.