23andMe to cut 40% of workforce, end therapeutics program


Genetic-testing company 23andMe announced plans to cut its workforce by 40% and end its therapeutics program in an effort to cut costs and restructure for "the long-term success of our core consumer business." Photo courtesy of 23andMe

Nov. 11 (UPI) -- Genetic-testing lab 23andMe plans to cut its workforce by 40% and end its therapeutics program in an effort to cut costs, the company announced Monday.

The layoffs will impact about 200 employees at the California-based firm and are expected to save the company about $35 million in annual costs.

"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," co-founder and Chief Executive Anne Wojcicki said in a statement.

"I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting the employees impacted by this transition," Wojcicki added.

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While 23andMe shares are down about 75% since the start of the year, the company's stock jumped more than 5% in after-hours trading following Monday's announcement.

23andMe went public in 2021 and grew to a market valuation of $6 billion. Since April, Wojcicki had been trying to take the company private until independent directors of 23andMe resigned in September. As of Monday, the company had a market cap of approximately $116 million.

23andMe also lost between $1 million and $2 million in "onetime expenses" last year related to a breach after hackers stole ancestry and personal data from 6.9 million customers.

The October 2023 leak -- which compromised DNA data, birthdates, locations and profile photos -- impacted nearly half of 23andMe's 14 million customers.

While the consumer genetics company also offers research programs for cancer drugs, it plans to refocus on the personalized DNA and ancestry tests that first made it successful.

"We continue to believe in the promise shown by our clinical and preclinical stage pipeline and will continue to pursue strategic opportunities to continue their development," Wojcicki said.

"We remain deeply grateful to the patients, investigators and study staff for their participation in our clinical trials."