23andMe announced that it is cutting approximately 200 employees or 40% of its workforce, and will stop all therapy development as part of a restructuring plan.
CEO and Co-Founder Anne Wojcicki stated that these decisions are necessary to focus on the long-term success of the company’s core consumer business and research partnerships. The company is considering options for its therapy pipeline, including licensing agreements and asset sales. Wojcicki, who has been trying to take 23andMe private since April, is facing challenges after the resignation of independent directors in September due to unsatisfactory offers.
“We continue to believe in the promise shown by our clinical and preclinical stage pipeline and will continue to pursue strategic opportunities to continue their development. We remain deeply grateful to the patients, investigators and study staff for their participation in our clinical trials,” said Wojcicki.
In July, she proposed to buy all outstanding shares not owned by her or her affiliates for 40 cents each. The company expects annual cost savings of over $35 million from this restructuring.
Today, the company released its earnings report for Q2 fiscal 2025, showing a 12% decrease in sales compared to last year. “We 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.” said Wojcicki in today’s press release.
By CEO NA Editorial Staff
