23andMe Restructures Amid Data Breach and Resignations

Genetic testing company 23andMe is laying off 40% of its workforce, over 200 employees, and discontinuing its therapeutics division as part of a major restructuring effort to cut costs and refocus on its core consumer business and research partnerships. The company, which has been grappling with a massive data breach affecting 6.9 million users and substantial financial losses, expects the layoffs and other cuts to save $35 million annually, though they will incur a $12 million severance cost. CEO Anne Wojcicki has been attempting to take the company private after its stock value plummeted post-IPO in 2021. The restructuring comes after a complete board resignation in September due to strategic disagreements with Wojcicki. 23andMe is evaluating alternatives for its clinical assets, including potential licensing or sales, as it seeks to ensure the long-term viability of its remaining business operations.