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23andMe announced on Monday it would cut 40% of its workforce, representing more than 200 employees, as part of a restructuring at the company. The genetic testing company is also discontinuing its therapeutics business and winding down its clinical trials; it expects these changes to save $35 million annually.
“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,” said CEO and co-founder Anne Wojcicki in a press release. “I want to thank our team for their hard work and dedication to our mission.”
On Tuesday, 23andMe reported $44 million in revenue during the second quarter, a decline from $50 million during the same period last year.
The mass workforce reductions mark the latest disruption in a tumultuous year for 23andMe. In September, 23andMe’s entire board of directors — including Silicon Valley icons such as YouTube CEO Neal Mohan — resigned following Wojcicki’s attempt to take the company private in August.
To start 2024 off, 23andMe was trying to save its reputation after a massive cyberattack, in which hackers stole ancestry data on 6.9 million users.
On a personal level, this has also been a difficult year for Anne Wojcicki, whose sister died in August. Susan Wojcicki was the longtime CEO of YouTube, and many people in Silicon Valley saw her as a visionary.
On Tuesday, 23andMe’s stock was slightly up, ending the day at $4.71 a share, but still significantly down from its 2021 high, which at one point reached over $300.
Maxwell Zeff is a senior reporter at TechCrunch specializing in AI and emerging technologies. Previously with Gizmodo, Bloomberg, and MSNBC, Zeff has covered the rise of AI and the Silicon Valley Bank crisis. He is based in San Francisco. When not reporting, he can be found hiking, biking, and exploring the Bay Area’s food scene.
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