Key points from article :
Struggling genetic testing company 23andMe has announced it will cut 40% of its workforce, laying off 200 employees as it tries to stabilize its finances. The once-popular DNA-testing company will also halt work on developing therapeutic treatments. Last year, 23andMe faced a significant data breach, with hackers gaining access to personal information from millions of users, though DNA data was reportedly not compromised. This breach led to investigations in the UK and Canada due to the sensitive nature of the information involved, including genetic details that remain constant over time.
The company’s stock has plunged over 70% this year as co-founder and CEO Anne Wojcicki attempts a turnaround. The planned restructuring will bring one-time costs of $12 million, mostly in severance pay, yet aims to save the company $35 million in annual expenses. Wojcicki stated that these changes are essential for focusing on the core consumer DNA-testing business and partnerships in research.
23andMe, known for offering ancestry and health insights through genetic testing, has garnered celebrity users, including Snoop Dogg and Warren Buffett. However, the recent challenges have raised concerns about data security and public trust in the company. In a recent blow, seven of the eight board members resigned in September, citing an unsatisfactory buyout offer from Wojcicki. Additionally, 23andMe is now considering options for its halted therapeutic projects, such as licensing or selling them.
As it refocuses, 23andMe faces a critical moment in restoring consumer trust and stabilizing its financial health in the competitive field of genetic testing.
