23andMe announces restructuring, layoffs and review of therapeutic programme
23andMe is to cut 200 jobs in the wake of declining revenues. This company expects a proposed retructuring, affecting 40% of its staff, will deliver annual cost savings of more than €33.25 million.
23andMe has been plagued by financial challenges in recent years. The company reported a significant net loss of €633.65 million for 2024, more than double its loss from the previous year. Revenue also fell 27% to €209 million during the same period. These financial difficulties are reflected in the significant drop in the company’s stock price, which has plummeted more than 74% this year and lost more than 97% of its value since the end of November 2020.
In addition to layoffs, 23andMe is exploring several options to maximise the value of its therapeutic programmes. This includes potential asset sales, licensing agreements and other transactions. At the same time, the company plans to wind down ongoing clinical trials related to these programmes, including one involving antibodies aimed at restoring the immune system’s ability to fight cancer cells, and another aimed at improving immunity against tumors.
23andMe CEO and co-founder Anne Wojcicki stressed that these actions are necessary for the long-term success of the company’s key consumer activities and research partnerships. She expressed her full commitment to supporting affected employees during this transition. While pursuing strategic opportunities for its clinical and preclinical programs, 23andMe remains focused on providing direct-to-customer genetic testing services.
Despite its early success and public enthusiasm for personalised health insights, 23andMe has faced recent challenges. Management problems, including a proposed stock takeover by Wojcicki that was rejected by the Special Committee, further complicated the company’s situation. The resignation of all seven independent directors from the board underscored major disagreements over the company’s strategic direction.
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