23andMe To Lay Off 40% of Its Workforce, Discontinue All Therapy Programs (bbc.com)
(Tuesday November 12, 2024 @05:50PM (BeauHD)
from the fight-for-survival dept.)
- Reference: 0175458509
- News link: https://science.slashdot.org/story/24/11/12/2124247/23andme-to-lay-off-40-of-its-workforce-discontinue-all-therapy-programs
- Source link: https://www.bbc.com/news/articles/cp9z7m2nljyo
The genetic testing company 23andMe announced it will [1]cut 40% of its workforce , or 200 jobs, and halt the work on therapies it was developing. As the BBC notes, the company is fighting for survival after hackers gained access to personal information of [2]millions of its users , causing the stock to crater by [3]more than 70% . All seven of its independent directors also [4]resigned in September , following a protracted negotiation with founder and Chief Executive Anne Wojcicki over her plan to take the company private. The BBC reports:
> On Tuesday, the company warned investors of "substantial doubt" about its ability to continue operating, as it reported that revenue had fallen to $44 million between July and September compared to $50 million in the same period last year. Losses fell to $59 million from $75 million. The job cuts are expected to lead to one-off costs of $12 million, including severance pay, for the plan that will result in savings of $35 million. "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," Ms Wojcicki said.
>
> The company also said it is considering what to do with the therapies it had in development, including licensing or selling them. 23andMe is a giant of the growing ancestor-tracing industry. It offers genetic testing from DNA, with ancestry breakdown and personalised health insights. Its customers include famous names, from rapper Snoop Dogg to multi-billionaire investor Warren Buffett. The company was valued at roughly $3.5 billion when it listed on the Nasdaq stock exchange in 2021 and its share price peaked at $17.65. But they have since tumbled and are currently trading at less than $5.
[1] https://www.bbc.com/news/articles/cp9z7m2nljyo
[2] https://it.slashdot.org/story/23/12/04/1911229/23andme-confirms-hackers-stole-ancestry-data-on-69-million-users
[3] https://slashdot.org/story/24/01/31/1532255/23andmes-fall-from-6-billion-to-nearly-0
[4] https://slashdot.org/story/24/09/18/1931220/23andme-board-resigns-in-new-blow-to-dna-testing-company
> On Tuesday, the company warned investors of "substantial doubt" about its ability to continue operating, as it reported that revenue had fallen to $44 million between July and September compared to $50 million in the same period last year. Losses fell to $59 million from $75 million. The job cuts are expected to lead to one-off costs of $12 million, including severance pay, for the plan that will result in savings of $35 million. "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," Ms Wojcicki said.
>
> The company also said it is considering what to do with the therapies it had in development, including licensing or selling them. 23andMe is a giant of the growing ancestor-tracing industry. It offers genetic testing from DNA, with ancestry breakdown and personalised health insights. Its customers include famous names, from rapper Snoop Dogg to multi-billionaire investor Warren Buffett. The company was valued at roughly $3.5 billion when it listed on the Nasdaq stock exchange in 2021 and its share price peaked at $17.65. But they have since tumbled and are currently trading at less than $5.
[1] https://www.bbc.com/news/articles/cp9z7m2nljyo
[2] https://it.slashdot.org/story/23/12/04/1911229/23andme-confirms-hackers-stole-ancestry-data-on-69-million-users
[3] https://slashdot.org/story/24/01/31/1532255/23andmes-fall-from-6-billion-to-nearly-0
[4] https://slashdot.org/story/24/09/18/1931220/23andme-board-resigns-in-new-blow-to-dna-testing-company