23andMe, a leading DNA-testing firm, is facing significant challenges as it restructures its business and focuses on long-term success. The company has seen its share price plummet by over 70% this year due to a series of setbacks, including a data breach and investigation by data watchdogs. In an effort to turn the business around, 23andMe will be cutting 40% of its workforce, resulting in approximately 200 job losses.
23andMe, a leading DNA-testing firm, is facing significant challenges as it restructures its business and focuses on long-term success.
Background
The company, which offers genetic testing from DNA with ancestry breakdown and personalized health insights, has seen its share price plummet by over 70% this year. This decline follows a series of setbacks, including:
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A data breach in December 2023, where hackers accessed the personal information of approximately 6.9 million users.
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An investigation into the breach by data watchdogs in the UK and Canada.
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The resignation of seven out of eight board members in September, citing dissatisfaction with a buyout offer from CEO Anne Wojcicki.
Restructuring Efforts
In an effort to turn the business around, 23andMe will be cutting 40% of its workforce, resulting in approximately 200 job losses. The company will also halt development on therapies it was previously working on.
Financial Impact
The restructuring efforts are expected to lead to one-off costs of $12m, including severance pay, while resulting in savings of $35m. Revenue fell to $44m between July and September compared to $50m in the same period last year, with losses decreasing to $59m from $75m.
Statement from CEO
“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, CEO of 23andMe.
# 23andMe Layoffs and Restructuring
Background
DNA-testing site 23andMe is facing significant challenges, including a major data breach and declining share price.
Data Breach
In December 2023, hackers accessed the personal information of approximately 6.9 million users, including family trees, birth years, and geographic locations. The stolen data did not include DNA records.
Restructuring Efforts
23andMe is undergoing restructuring efforts to focus on its core consumer business and research partnerships.
Workforce Reduction
The company plans to lay off 40% of its workforce, affecting approximately 200 employees.
Therapy Development Halt
Development of therapies being developed by the company will be halted.
Financial Impact
23andMe’s share price has fallen by over 70% in the past year, with revenue declining from $50m to $44m between July and September. Losses have also decreased from $75m to $59m.
Job Cuts Costs and Savings
The job cuts are expected to result in one-off costs of $12m, including severance pay, but will lead to savings of $35m.
Quotes
“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, co-founder and chief executive.
