NEW YORK – 23andMe is shedding 40% of its workforce, greater than 200 employees, and shutting down its therapeutics division because the struggling genetic testing company tries to chop costs.
The latest restructuring efforts were announced by 23andMe on Monday. The company said it plans to finish ongoing clinical trials “as quickly as possible” – and is currently evaluating “strategic alternatives” for assets related to its drug development and research programs, which include studies of potential cancer treatments.
In a prepared statement, Anne Wojcicki, CEO and co-founder of 23andMe, said the corporate is “taking these difficult but necessary actions” because it focuses on “the long-term success of our core consumer businesses and our research partnerships.”
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The restructuring comes at a time of turmoil at South San Francisco-based 23andMe, which has recently led to a high-profile data breach, several previous rounds of layoffs and steep losses which have sent the corporate's stock plummeting in recent times.
Back in September, all of 23andMe's independent directors also resigned from the board – a rare move that followed protracted negotiations with Wojcicki, who had sought to take the corporate private. The seven resigning directors said that they had not yet received an appropriate transaction proposal from the chief executive, citing a “clear” disagreement over the long run of 23andMe.
After leaving Wojcicki as sole board member for greater than a month, 23andMe announced it had appointed three latest independent directors in late October.
23andMe went public in 2021 and has struggled to search out a profitable business model ever since — especially since most buyers of its saliva-based testing kits only must make a one-time purchase. The company posted a net lack of $667 million in its most up-to-date fiscal 12 months, greater than double the $312 million loss the previous 12 months.
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23andMe posted one other loss in its quarterly results reported Tuesday, although with smaller losses than in previous quarters. The company reported a net lack of $59.1 million for the second quarter of fiscal 2025, in comparison with a lack of $75.3 million the identical 12 months before.
However, second-quarter revenue totaled $44.1 million – down from $50 million a 12 months ago. The company cited lower sales of testing kits and telemedicine orders and a decline in research revenue, but said that was partially offset by growth in member services.
23andMe expects the job cuts and other restructuring measures announced Monday will reduce operating costs and save the corporate greater than $35 million annually. 23andMe also expects to incur costs of as much as $12 million, primarily related to one-time severance and other termination-related costs.
23andMe ended the quarter with money and money equivalents of $127 million, in comparison with $216 million as of March 31, 2024.
Last month, 23andMe accomplished a 1-for-20 reverse stock split. By midday Tuesday, shares were down nearly 4%, trading at around $4.43.
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