Michelle Thompson23andMe, the struggling genetic testing company, will lay off 40% of its workforce, or 200 employees, as part of a survival effort. It will also cease work on developing therapies. The company’s share price has dropped over 70% this year, and its co-founder, Anne Wojcicki, is working to restructure the business. The company will incur $12 million in one-time costs, including severance pay, but expects savings of $35 million.
Last year, 23andMe reported a security breach where hackers accessed personal data from 6.9 million users, though DNA records were not compromised. The UK and Canada are investigating the breach, and 23andMe emphasized the importance of public trust due to the sensitive nature of its genetic data.
In September, seven of its eight board members resigned after failing to receive a satisfactory buyout offer from Wojcicki.
