23andMe Implementing Mass Redundancies, Dismissing 40% of Its Employees Amidst Business Struggles
23andMe Implementing Mass Redundancies, Dismissing 40% of Its Employees Amidst Business Struggles
Genetic testing firm 23andMe declared they'd be let go of over 200 employees, which equates to around 40% of their overall staff, as per a statement released on Monday. This decision is part of a restructuring plan that will also put a halt to their therapeutics division's progress, a sector that was working on various potential medical therapies.
"We're implementing these tough but necessary actions as we restructure 23andMe, concentrating on the long-term success of our core consumer business and research collaborations," said Anne Wojcicki, 23andMe's CEO and co-founder, in a press statement. "I'd like to thank our team for their tireless efforts and dedication to our mission. We are wholeheartedly devoted to supporting the employees affected by this transformation."
The company is looking to offload assets connected to the therapeutics division, such as their work against cancer cells and research with monoclonal antibodies.
"We continue to believe in the potential demonstrated by our clinical and preclinical stage pipeline and will carry on pursuing strategic opportunities to advance its development," stated Wojcicki. "We remain profoundly thankful to the patients, researchers, and study staff for their involvement in our clinical trials."
The company anticipates saving approximately $35 million annually from these layoffs but expects to incur around $12 million in expenses associated with letting go of nearly half of their workforce, including severance payments, transition fees, and other costs.
23andMe went public in 2021 but has faced challenges in finding a viable business model, considering that many individuals don't find a reason to utilize their services after one test. Following the arrival of DNA test results, there's not much incentive to revisit the company, even if they introduce "subscription" services, as reported by Gizmodo earlier this year, with complaints about misleading auto-renewal policies lodged with the FTC.
Wojcicki unveiled an attempt to privatize the company in April; however, Reuters reported that independent directors resigned in September due to lack of a satisfactory offer.
23andMe also faced a hack back in 2023, resulting in the theft of nearly 7 million user's data, with a fraction of it later found on the dark web. With the company now aiming for privatization, concerns are rising regarding what could happen to the personal data collected from users, wherever it's sold. Typically, such worries revolve around issues like home addresses, credit card numbers, and social security numbers. But when it involves genetic information, that feeling of invasion certainly escalates.
The tech industry is rapidly evolving, and 23andMe is leveraging this trend to focus on the future of their consumer business and research collaborations. To achieve this, they're investing heavily in technology, aiming to enhance their services and offerings.
Moving forward, 23andMe's strategic approach to technology will ensure they remain at the forefront of genetic testing, promising innovations that safeguard user data while unlocking new possibilities for personalized medicine.