NEW YORK — 23andMe is shedding 40% of its workforce, or greater than 200 workers, and discontinuing its therapeutics division because the struggling genetic testing firm makes an attempt to slash prices.
The most recent restructuring efforts have been introduced by 23andMe on Monday. The corporate stated it plans to wind down ongoing scientific trials “as quickly as practical” — and that it was at the moment evaluating “strategic alternatives” for property associated to its drug growth and analysis packages, which embody research on potential most cancers remedies.
In a ready assertion, 23andMe CEO and co-founder Anne Wojcicki stated the corporate was “taking these difficult but necessary actions” because it focuses on “the long-term success of our core consumer business and research partnerships.”
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The restructuring arrives throughout a interval of turmoil at South San Francisco-based 23andMe, which has not too long ago included a high-profile information breach, a number of rounds of earlier layoffs and piling losses that plunged the corporate’s inventory over current years.
Again in September, all of 23andMe’s unbiased administrators additionally resigned from its board — in a uncommon transfer that adopted drawn-out negotiations with Wojcicki, who has been making an attempt to take the corporate non-public. The seven resigning administrators stated that they had but to obtain an enough transaction proposal from the chief govt and cited a “clear” distinction of opinion on 23andMe’s future.
On the time, Wojcicki stated she was “surprised and disappointed” by the resignations however maintained that taking 23andMe non-public and “outside of the short-term pressures of the public markets” could be greatest for the corporate long run.
After greater than a month with Wojcicki left as the only member of the board, 23andMe introduced that it had appointed three new unbiased administrators in late October.
23andMe went public in 2021 and has struggled to discover a worthwhile enterprise mannequin since — significantly with most patrons of its saliva-based testing kits solely needing to buy as soon as. The corporate reported a internet lack of $667 million for its final fiscal 12 months, greater than double the lack of $312 million for the 12 months prior.
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23andMe posted one other loss in quarterly earnings launched Tuesday, though with much less of a dent than in earlier quarters. The corporate reported a internet lack of $59.1 million for the 2025 fiscal 12 months’s second quarter, in comparison with a lack of $75.3 million for a similar 12 months prior.
Income, nevertheless, totaled at $44.1 million for the second quarter — down from $50 million from the 12 months prior. The corporate cited decrease testing package gross sales and telehealth orders, in addition to a lower in analysis income, however stated that was partially offset by a progress in membership companies.
23andMe anticipates the job cuts and different restructuring efforts introduced Monday to cut back its working bills and save the corporate greater than $35 million yearly. 23andMe additionally expects to incur as much as $12 million in prices, primarily associated to one-time severance and different termination-related bills.
23andMe ended the quarter with money and money equivalents of $127 million, in contrast with $216 million as of March 31, 2024.
Final month, 23andMe accomplished a 1-for-20 reverse inventory break up. Shares have been down practically 4% by noon Tuesday, sitting at round $4.43.
