In early 2023, genetic testing firm 23andMe had over 800 workers. That quantity has greater than halved as 23andMe undergoes restructuring to chop prices.
On Monday, 23andMe introduced its fifth round of layoffs for the reason that starting of 2023. This spherical impacts over 200 folks or about 40% of its present workforce — now the corporate’s worker rely is right down to roughly 300 folks. The layoffs are anticipated to save lots of 23andMe about $35 million.
Associated: 23andMe to Pay $30 Million Settlement After Massive Hack Exposed Customer Data to Dark Web
“We’re taking these tough however vital actions as we restructure 23andMe and give attention to the long-term success of our core client enterprise and analysis partnerships,” 23andMe CEO Anne Wojcicki acknowledged in a press release.
Along with the layoffs, 23andMe is shutting down its therapeutics enterprise, which studied most cancers remedies.
23andMe CEO Anne Wojcicki. Photographer: Kyle Grillot/Bloomberg by way of Getty Pictures
Associated: ‘Surprised and Disappointed’: All Independent Board Members of 23andMe Resign, Leaving Only the CEO
What occurred to 23andMe?
23andMe’s transfer to restructure and reduce prices follows a tumultuous few years for the corporate. The genetics firm has seen its valuation fall 99% from its $6 billion top when it first went public in 2021, leaving it a penny stock.
In April 2023, 23andMe was focused in a hack that uncovered the non-public knowledge of 6.9 million prospects. The corporate agreed to pay $30 million plus three years of safety monitoring to settle the case.
Then, in September, all unbiased board members of 23andMe resigned, leaving simply the CEO. In a letter, they known as out Wojcicki for not submitting a full proposal to take the corporate non-public over the earlier 5 months. They mentioned that they’d a “protracted and distracting distinction of view” with Wojcicki about “the path of the Firm.”
Wojcicki controls 49% of 23andMe votes. A particular committee created by the corporate rejected Wojcicki’s proposal in August to purchase all of the shares she did not already personal at $0.40 per share and take the corporate non-public. The board members’ resignations adopted the transfer.
23andMe has since appointed new unbiased administrators to its board, including three executives in late October.
