The genetic testing company 23andMe has said it would slash 40% of its workforce after recording a drop in revenues.
The California-based firm said it was reducing its workforce by 200 people to streamline operations, reduce costs, and “position [the] company for the future.”
Additionally, the firm announced it would discontinue efforts to develop new medicines, ending founder and CEO Anne Wojcicki’s ambition to transform it into a drug development company.
The restructuring will save 23andMe more than $35 million per year, the company said in a statement.
The announcement comes after the company reported $44 million in revenue in the three months to September, a drop from $50 million in the same period last year as demand for its testing kits slowed.
“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,” Wojcicki said in a statement.
23andMe was valued at $5.8 billion at its peak in 2021 but dropped to less than $150 million after a series of challenges it faced in recent years.
In 2023, the company experienced a data breach affecting about 6.9 million users, which led to concerns about data privacy and security.
The breach lasted five months, from April through September, and 23andMe confirmed attackers may have accessed user genotype data, health reports, and other sensitive details.
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