23andMe Cuts 40% of Workforce, Discontinues Therapeutics

23andMe is laying off 40% of its workforce, over 200 employees, and discontinuing its therapeutics division as part of a restructuring effort aimed at slashing costs amidst ongoing turmoil, including a major data breach and a significant decline in stock value. CEO Anne Wojcicki described these layoffs as 'difficult but necessary' to ensure the long-term success of the company's core consumer business and research partnerships. The company plans to wind down clinical trials quickly while evaluating strategic alternatives for its remaining assets, expecting to save around $35 million annually. This decision follows the resignation of all independent directors from the board in September, which highlighted internal conflicts over the company's direction. Despite these challenges, Wojcicki remains committed to restoring financial stability, as illustrated by a slight increase in share price recently. 23andMe's struggles are compounded by the fallout from a 2023 data breach affecting nearly 7 million customers.