Genomics and biotech firm 23andMe announced massive layoffs and restructuring on Tuesday in attempts to slash its inflated costs. It expects to lay off 40% of its workforce, which amounts to around 200 employees, while also shutting down its therapeutics unit.
23andMe, which gained prominence for its personal DNA ancestry tests, said it would focus on wrapping up its clinical trials as soon as possible while exploring “strategic alternatives” like licensing agreements.
“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 said in a statement.
23andMe also shared its second-quarter earnings for fiscal 2025, disclosing a net loss of $59.1 million and revenue of $44.1 million. It had a loss of $75.3 million and revenue of $50 million in the same period last year.
23andMe has been facing a number of issues in recent years, including a data breach in 2023 that exposed close to 7 million users. This resulted in several lawsuits that the company is still trying to fend off. More recently, the company’s entire board resigned after Wojcicki unsuccessfully attempted to take 23andMe private.
23andMe stock ticked up by 2.17% on Tuesday, closing at $4.71 per share. The company’s shares are still down 74.08% year-to-date.