In brief
In a major shakeup, 23andMe is cutting 40% of its workforce and ceasing therapy projects while grappling with falling share prices and a data breach.
In a tough economic climate, 23andMe, the well-known DNA-testing company, is facing major challenges. The firm announced it will be laying off 40% of its employees—roughly 200 jobs—as part of a survival strategy. Co-founder and CEO Anne Wojcicki aims to reshape the company’s focus on its core consumer services and research partnerships after a sharp decline in stock prices, down over 70% this year. Additionally, 23andMe has halted work on potential therapies and is considering licensing or selling its drug research efforts. This follows a serious data breach last year when hackers gained access to sensitive information of nearly 6.9 million users, however, they did not compromise DNA records. The company, which has gained fame for its ancestor-tracing services and health insights, highlighted that restructuring comes with immediate costs of $12 million but anticipates saving $35 million in the long run. From celebrities like Snoop Dogg to investor Warren Buffett, 23andMe has catered to a diverse clientele, but now faces the challenge of finding its footing in a competitive market.
