(NewsNation) — Genetic testing company 23andMe has faced a series of struggles this year, culminating in end-of-year mass layoffs — 40% of the company’s workforce — and declining sales.
The biotech company, which collects consumers’ voluntarily submitted saliva in testing kits, announced the layoffs on Monday, impacting more than 200 employees.
It will also discontinue its therapeutics division and slow its clinical trials to cut operating costs.
23andMe could be sold. What happens to users’ data?
23andMe reported a quarter two loss on Tuesday of $59.1 million compared to a loss of $75.3 million for the same year prior.
Trouble set in when, in 2023, hackers were able to access about 14,000 accounts, compromising the data of 6.9 million users, which led to a class-action lawsuit against 23andMe. The company settled for $30 million.
In October, 23andMe completed a reverse stock split, which reduces the number of shares a company’s shareholders own. Market players generally do not favor reverse stock splits.
Before that, in September, the entire independent board of directors resigned.
23andMe agrees to $30M settlement over 2023 data breach
In just three years since going public in 2021, 23andMe has struggled to overcome net losses year-to-year.
CEO and co-founder Anne Wojcicki told the Associated Press that the company was “taking these difficult but necessary actions” as it focuses on “the long-term success of our core consumer business and research partnerships.”
