'Difficult but Necessary': 23andMe Is Cutting 40% of Its Workforce About two out of five employees are affected.
By Sherin Shibu
Key Takeaways
- On Monday, 23andMe announced its fifth round of layoffs since the beginning of last year.
- The layoffs impact over 200 people or about 40% of 23andMe’s existing workforce.
- The genetics health company is looking to cut costs after a tumultuous few years.
In early 2023, genetic testing company 23andMe had over 800 employees. That number has more than halved as 23andMe undergoes restructuring to cut costs.
On Monday, 23andMe announced its fifth round of layoffs since the beginning of 2023. This round affects over 200 people or about 40% of its current workforce — now the company's employee count is down to roughly 300 people. The layoffs are expected to save 23andMe about $35 million.
Related: 23andMe to Pay $30 Million Settlement After Massive Hack Exposed Customer Data to Dark Web
"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," 23andMe CEO Anne Wojcicki stated in a press release.
In addition to the layoffs, 23andMe is shutting down its therapeutics business, which studied cancer treatments.
23andMe CEO Anne Wojcicki. Photographer: Kyle Grillot/Bloomberg via Getty Images
Related: 'Surprised and Disappointed': All Independent Board Members of 23andMe Resign, Leaving Only the CEO
What happened to 23andMe?
23andMe's move to restructure and cut costs follows a tumultuous few years for the company. The genetics company has seen its valuation fall 99% from its $6 billion height when it first went public in 2021, leaving it a penny stock.
In April 2023, 23andMe was targeted in a hack that exposed the personal data of 6.9 million customers. The company agreed to pay $30 million plus three years of security monitoring to settle the case.
Then, in September, all independent board members of 23andMe resigned, leaving just the CEO. In a letter, they called out Wojcicki for not submitting a full proposal to take the company private over the previous five months. They said that they had a "protracted and distracting difference of view" with Wojcicki about "the direction of the Company."
Wojcicki controls 49% of 23andMe votes. A special committee created by the company rejected Wojcicki's proposal in August to buy all the shares she didn't already own at $0.40 per share and take the company private. The board members' resignations followed the move.
23andMe has since appointed new independent directors to its board, adding three executives in late October.
