Struggling DNA-testing site 23andMe to lay off 40% of its workers

Published On Nov 11, 2024, 8:46 PM

23andMe, a leading DNA testing company, is laying off 40% of its workforce (around 200 employees) and halting its therapeutic development efforts as part of a restructuring plan aimed at ensuring long-term survival. These actions come after a significant decline in its share price (over 70% this year) and following a data breach that compromised personal information of millions of users. The company anticipates one-off costs of $12 million for this restructuring, but it aims to save $35 million in the long run. CEO Anne Wojcicki stated that the focus will now be on the core consumer business and research partnerships, while also exploring options for their therapy developments, potentially through licensing or selling them.

Stock Forecasts

The significant layoffs and halting of therapy development point to severe financial distress and a focus on core operations. This restructuring might strengthen the company in the long term if it can regain consumer trust and stabilize operations.

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A plummet in the company’s valuation and a recent board resignation have raised questions about the future of genetic data collected from millions of customers.

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