23andMe Slashes Workforce to Survive Crisis
- 23andMe has announced a 40% reduction in its workforce, impacting around 200 employees.
- The company will halt work on therapy development as part of its restructuring efforts.
- These measures are aimed at focusing on the core consumer business and improving financial stability.
In a significant restructuring move, the genetic testing company 23andMe announced a reduction in its workforce by 40%, translating to approximately 200 jobs, and stated that it would cease development of all its therapy programs. This decision comes amidst ongoing challenges including a sharp decline in share prices and a data breach that affected millions of users. The CEO Anne Wojcicki indicated that these cuts are necessary for the long-term success of the company's core consumer business. Despite the workforce reduction, the firm is evaluating strategic alternatives for its therapies, including potential licensing and asset sale options in the wake of recent corporate governance issues, including the resignation of most of its independent directors. With savings expected to reach $35 million annually, the company aims to stabilize operations and regain consumer trust.