23andMe Cuts Deep: Lays Off 40% of Staff, Shifts Focus to Core Business

Amid financial struggles, genetic testing company 23andMe is laying off over 200 employees—40% of its workforce—and closing its therapeutics division to prioritize its consumer-focused core business. CEO Anne Wojcicki announced the move as part of a larger restructuring plan to save more than $35 million annually and put the company on a sustainable path. This pivot follows a series of challenges since 23andMe went public in 2021, including declining stock prices, a failed attempt by Wojcicki to take the company private, and the resignation of seven board members. The company also plans to explore strategic alternatives for its clinical assets while maintaining initiatives like a subscription plan to bolster revenue.

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The restructuring caps years of efforts in the therapeutics space, including a high-profile partnership with GSK that began in 2018. While that partnership yielded extensions and lucrative data licensing deals, the therapeutic division’s closure marks a significant shift in strategy. Despite a reported $44 million in Q2 revenue, 23andMe posted a $59.1 million net loss, highlighting its financial challenges. Wojcicki remains optimistic about refocusing the business, but the path forward includes navigating layoffs, reduced operating expenses, and an uncertain future for its genetic research initiatives.