23andMe Announces Major Workforce Reduction and Therapeutics Division Shutdown

23andMe, a leading genetics-led consumer healthcare company, has announced a significant business restructuring that includes a substantial reduction in its workforce and the discontinuation of its therapeutics division. The company revealed that it will be cutting approximately 40% of its workforce, which translates to over 200 employees, in an effort to streamline operations and reduce costs[2].

The restructuring is expected to yield annualized cost savings of more than $35 million, although the company anticipates incurring up to $12 million in one-time severance, transition, and termination-related costs. This move is part of 23andMe’s strategy to focus on its core consumer business and research partnerships.

Alongside the workforce reduction, 23andMe is discontinuing the development of all its therapeutics programs. The company is exploring strategic alternatives for its clinical and preclinical assets, including potential licensing agreements, asset sales, or other transactions. This decision includes winding down ongoing clinical trials as quickly as possible while the strategic alternatives process is underway.

“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,” said Anne Wojcicki, 23andMe’s CEO, Co-Founder, and Chair of the Board. Wojcicki expressed gratitude to the employees impacted by the transition and commitment to supporting them through this period.

The announcement comes at a challenging time, just ahead of the holiday season, and highlights the company’s efforts to adapt to changing market conditions and prioritize its core business segments[3]).