Facing a severe downturn, 23andMe, known for its genetic testing services, will reduce its workforce by 200 employees, representing 40% of its staff, while also ceasing the development of new therapies. The company has previously experienced data breaches impacting millions of users, and its stock has plummeted over 70% this year under the leadership of co-founder and CEO Anne Wojcicki. To combat these challenges, the company anticipates one-time costs of $12 million linked to layoffs, projected to lead to savings of $35 million. Wojcicki stated that these actions are part of a necessary restructuring focused on the company’s core consumer business and research partnerships. Additionally, 23andMe is exploring options for its existing therapies, which could include licensing or selling them. Notably, the firm has a diverse customer base including high-profile individuals such as rapper Snoop Dogg and billionaire investor Warren Buffett. The decline in share price and operational challenges reflect the competitive and evolving landscape of the genetic testing market.
The company experienced a data breach that exposed personal information of approximately 6.9 million users, with details such as family trees and geographic locations being accessed, though DNA records were secured.
23andMe's shift in strategy highlights the challenges faced by companies in the genetic testing industry, as they navigate between consumer interests, data security concerns, and the ever-present need for innovation to remain relevant in a crowded market.
