The company is laying off 40% of its workforce and discontinuing its therapeutics division.

23andMe is laying off 40 per cent of its workforce, or more than 200 employees, and discontinuing its therapeutics division as the struggling genetic testing company attempts to slash costs.

Millions of people have used 23andMe’s simple genetic testing service, which involves ordering a saliva test, spitting into a tube, and sending it back to the company for a detailed DNA analysis

1. Struggling DNA-testing site 23andMe to lay off 40% of its workers  BBC.com
2. 23andMe lays off 40% of its workforce, ends therapeutics division  CBC.ca
3. Genetic testing firm 23andMe cuts 40% of its workforce amid financial struggles  The Guardian
4. 23andMe reports sales decline a day after announcing plans to cut 40% of workforce  CNBC
5. 23andMe warns of ‘substantial doubt’ over its survival without new funding  Financial Times

Anne Wojcicki, CEO of 23andMe, spent a decade in healthcare and biotechnology before launching the DNA testing and analysis company in 2006. Her goal was twofold: to help individuals learn more about their own genetics, enabling them to pursue more personalized medical care, and to create a database of genetic information for commercial and academic researchers to promote broader improvements to the healthcare system. She speaks with HBR's Editor-in-Chief Adi Ignatius about tackling challenges in an emerging industry.

For BBC, Zoe Kleinman reports: Not so long ago, 23andMe was in the…

Tags: 23andMe, BBC

DNA-testing company 23andMe (Nasdaq: ME), once an industry leader that attracted millions of customers, including rapper Snoop Dogg and investor Warren Buffett, has announced significant cuts to its operations, with plans to lay off 200 employees or roughly 40% of its workforce. The company also said it will discontinue development of its therapeutic programs. Here’s what to know about the latest development and what led up to it.

Board exodus

The latest move comes as the company looks to stabilize after facing significant challenges, including the resignation of all seven independent board members in October.

Data breach

Last year, 23andMe suffered a massive data breach when hackers accessed the personal information of 6.9 million users. The incident led to a class-action lawsuit, which, in September, 23andMe agreed to settle for $30 million.

The problem with SPACs

In 2021, 23andMe went public through a merger with a special purpose acquisition company, or SPAC. It later expanded into drug-discovery and weight-loss sectors. However, as DNA test kit sales declined, so did its financial health. By fiscal 2023, it reported a $312 million net loss, with its stock down 98% since going public, currently at about $4 after a reverse stock split in October 2024.

Separate reports have found that things have often not ended well for companies that took advantage of the pandemic-era SPAC boom, which led to billions in losses for investors and a number of bankruptcies for companies.

What’s next for 23andMe and its employees?

The layoffs are expected to result in $12 million in severance, termination, and transition-related costs and are part of a broader plan to streamline the business and achieve annual cost savings of $35 million.

The company says it is exploring various strategic options for its therapeutic programs, including potential licensing agreements and the sale of assets in its development pipeline.

“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,” said Anne Wojcicki, cofounder, CEO, and chair of the board, in a statement.

Shares of 23andMe were up almost 6% to $4.87 on the news, which was announced late yesterday. The stock is down more than 73% year to date.

The genetic testing company 23andMe announced it will cut 40% of its workforce, or 200 jobs, and halt the work on therapies it was developing. As the BBC notes, the company is fighting for survival after hackers gained access to personal information of millions of its users, causing the stock to crater by more than 70%. All seven of its independent directors also resigned in September, following a protracted negotiation with founder and Chief Executive Anne Wojcicki over her plan to take the company private. The BBC reports: On Tuesday, the company warned investors of "substantial doubt" about its ability to continue operating, as it reported that revenue had fallen to $44 million between July and September compared to $50 million in the same period last year. Losses fell to $59 million from $75 million. The job cuts are expected to lead to one-off costs of $12 million, including severance pay, for the plan that will result in savings of $35 million. "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," Ms Wojcicki said. The company also said it is considering what to do with the therapies it had in development, including licensing or selling them. 23andMe is a giant of the growing ancestor-tracing industry. It offers genetic testing from DNA, with ancestry breakdown and personalised health insights. Its customers include famous names, from rapper Snoop Dogg to multi-billionaire investor Warren Buffett. The company was valued at roughly $3.5 billion when it listed on the Nasdaq stock exchange in 2021 and its share price peaked at $17.65. But they have since tumbled and are currently trading at less than $5.

Read more of this story at Slashdot.

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.

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.

More than 200 employees of 23andMe are being laid off as part of the company’s ongoing cost-cutting measures. The layoffs will impact 40 percent of the genetic testing company’s workforce.

23andMe CEO and co-founder Anne Wojcicki said in a statement released on Monday that the staff reduction would save the beleaguered company more than $35 million. She called the layoffs “difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships.”

The company also announced it will start to shut down its therapeutics clinical programs that used its genetic database to research and develop new drugs. The therapeutics division housed two “immuno-oncology programs” that investigated therapeutic antibodies “designed to restore the ability of the body’s immune cells to kill cancer cells,” according to the division’s website.

The San Francisco-based company has not had an easy year. Hackers hit the genetics giant in April of last year and leaked information of 6.9 million customers. The data breach went unnoticed for a year and a half, leading to a $30 million settlement of a class action lawsuit and resignations from the company’s entire board.

Once millions used it to find out about their family histories - this week it was almost delisted. What went wrong?

The once-popular general DNA-testing firm holds a trove of sensitive genetic data from its customers.

About two out of five employees are affected.

New partnership is part of GSK’s R&D face-lift, which includes an increased focus on immune system targets

The FDA would like for 23andMe to prove that their tests are accurate.

23andMe Cofounder Anne Wojcicki and Stanford Professor of Bioengineering and Applied Physics Stephen Quake spoke with WIRED’s Cofounder Jane Metcalfe as part of WIRED25, WIRED’s 25th anniversary celebration in San Francisco.

New partnership is part of GSK’s R&D face-lift, which includes an increased focus on immune system targets