23andMe Announces Major Layoffs Amid Struggles for Survival

Struggling to regain its footing, 23andMe will cut around 200 jobs and halt several therapeutic projects as it focuses on its core DNA-testing services after a year marked by significant financial losses and data breaches.

23andMe, the prominent player in the DNA-testing industry, is set to lay off 40% of its employees, translating to approximately 200 jobs, in a bid to navigate its ongoing financial challenges. Alongside this drastic measure, the company will also discontinue its development of new therapies, shifting its focus back to its mainstay consumer genetic testing services.

The company's troubles intensified after it disclosed in December that hackers had accessed personal information of nearly 6.9 million users, dramatically impacting trust and share value. 23andMe's stock has plummeted by over 70% this year, compelling CEO Anne Wojcicki to initiate a comprehensive restructuring strategy.

In an official statement, Wojcicki described the decision as "difficult but necessary," emphasizing a commitment to ensuring long-term viability by redirecting efforts towards the consumer market and collaborative research projects. The layoffs are anticipated to incur one-time expenditure of $12 million (£9.3 million) but aim to achieve savings of approximately $35 million.

Additionally, 23andMe is evaluating its therapeutic projects and is considering potential options for these therapies, including possible licensing or sales. Despite its setbacks, 23andMe remains a leader in the booming ancestry tracing sector and has attracted a celebrity clientele, including notable figures like rapper Snoop Dogg and investor Warren Buffett.

While facing an uphill battle with its financial stability and the need to restore user confidence, 23andMe is determined to refocus on the core aspects of its business in an evolving market landscape.