Genetic testing company 23andMe based in the United States of America, Carlifonia has announced plans to cut 40% of its workforce, approximately 200 jobs, as it battles severe financial difficulties. The company, once a frontrunner in consumer DNA testing, will also halt its efforts on therapy development in an attempt to regain stability.
23andMe’s financial struggles have been compounded by a cybersecurity breach last year, in which hackers accessed sensitive personal data for around 6.9 million users, though DNA records were reportedly not included. Details compromised in the breach included family trees, birth years, and geographic locations, according to the company.
This year, 23andMe’s share price has increased by over 70%, putting further pressure on co-founder and CEO Anne Wojcicki to stabilize the company. 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.”
The restructuring is expected to incur one-time costs of approximately $12 million, which includes severance pay, but is anticipated to save the company around $35 million annually.
Amid these cuts, 23andMe is also reconsidering its approach to therapy development and may seek to license or sell these projects. Known for offering genetic testing services with personalized health insights and ancestry breakdowns, 23andMe’s clientele has included notable figures such as rapper Snoop Dogg and investor Warren Buffett.
