23andMe announced on Monday that it would lay off 40% of its workforce, impacting over 200 employees, as part of a broader restructuring to focus on its core consumer and research partnerships.
Alongside the layoffs, the genetic testing company will discontinue its therapeutics business and wind down ongoing clinical trials, with anticipated annual savings of $35 million.
“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 CEO and co-founder Anne Wojcicki. She expressed appreciation for her team’s dedication amid the shift.
The announcement came on the heels of 23andMe’s second-quarter revenue report, showing a dip to $44 million from $50 million in the same quarter last year. These layoffs are the latest in a challenging year for the company, which faced significant leadership changes after Wojcicki’s attempt to take 23andMe private in August led to the resignation of the entire board, including prominent figures like YouTube CEO Neal Mohan.
In September, the company’s reputation took a hit following a massive cyberattack that compromised ancestry data for 6.9 million users. Anne Wojcicki has also endured personal hardship, with the passing of her sister, former YouTube CEO Susan Wojcicki, in August—a loss felt across Silicon Valley, where Susan was admired as a visionary.
Despite the turbulence, 23andMe’s stock saw a modest increase on Tuesday, ending the day at $4.71 per share, although still far below its peak of over $300 in 2021.
