23andMe cuts 40% of its workforce
About 200 people will lose their jobs in 23andMe's layoffs
Elizabeth O’Brien suggests potential path forward for ‘troubled’ 23andMe
‘Barron’s Roundtable’ panelists discuss the latest headlines around 23andMe and share top stock picks.
Genetics testing company 23andMe said on Monday that it is cutting its headcount by 40%, or more than 200 employees.
The job cuts come as 23andMe seeks to undergo a restructuring that the company said will "streamline operations and reduce costs."
"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," CEO Anne Wojcicki said.
Sign with logo on facade of personal genomics company 23andMe in Mountain View, California, October 28, 2018. (Photo by Smith Collection/Gado/Getty Images) (Smith Collection/Gado/Getty Images / Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The company said the restructuring will cost up to $12 million.
Overall, the company will see over $35 million in annualized savings from the restructuring and its associated "substantially" reduced operating expenses.
23andMe also said its therapeutics development will end.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ME | 23ANDME HOLDING CO | 3.00 | -0.82 | -21.47% |
For a "limited time," the company said it will look at "strategic options" like licensing agreements, asset sales and transactions to "maximize the value of its therapeutics program."
23ANDME AGREES TO PAY $30M TO SETTLE LAWSUIT OVER 2023 DATA BREACH
23andMe noted there "can be no assurance that the strategic alternatives process for the therapeutics assets will result in any course of action and there is no definitive timeline for completion."
Shares of 23andMe have fallen nearly 75% this year.
The independent directors of 23andMe resigned from the company's board in September after not receiving a satisfactory take-private offer from Wojcicki.
Earlier that month, the company agreed to pay $30 million and provide three years of security monitoring to settle a lawsuit accusing it of failing to protect the privacy of 6.9 million customers whose personal information was exposed in a data breach last year.
The job cuts come as 23andMe seeks to undergo a restructuring that the company said will "streamline operations and reduce costs." (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
Wojcicki said Tuesday in 23andMe’s quarterly earnings release that the company "will continue to prioritize driving recurring revenue through our subscription business, in addition to growing our research partnership business as we look to the future."
CLICK HERE TO READ MORE ON FOX BUSINESS
The company first became well-known for the genetics testing kits that it sells to consumers. It later delved into therapeutics research and other initiatives.
Reuters contributed to this report