According to 23andMe latest news, 23andMe announced that it would cut approximately 40% of its workforce totaling around 200 employees. The layoffs are expected to help the company save around $35 million annually.
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The company’s financial health has been in decline. In the latest quarter, 23andMe reported revenues of $40 million, down from $61 million for the same period the previous year, a 34% drop.
The decline in revenue has been attributed to the expiration of its exclusive research collaboration with GlaxoSmithKline in 2023, as well as a drop in sales of its personal genome service kits.
In August 2024, financial reports showed a 33% decline in revenue to $44.7 million for the third quarter.
A factor adding to the company’s struggles was a data breach reported in late 2023, which exposed personal information of approximately 7 million users.
Hackers gained access to data such as family trees, birth years and geographic locations through compromised user accounts.
While DNA records were reportedly not accessed, the breach raised privacy concerns among customers. Following the data breach, investigations were launched by data watchdogs in the UK and Canada to examine the company’s data protection protocols.
Another major aspect of 23andMe latest news is its decision to halt its therapeutics division. The company ventured into developing DNA-based therapies especially in oncology.
However, due to resource constraints, it has decided to discontinue these research efforts. The company is now seeking buyers or licensing options for its immuno-oncology assets and other therapeutic projects.
23andMe latest news states that the company will return to its roots, addressing its consumer DNA testing and ancestry services.
The company’s leadership including CEO Anne Wojcicki believes that focusing on their core offerings and research partnerships is essential for success.
The company’s DNA testing services have gained popularity for delivering insights on ancestry, health risks and wellness recommendations.
23andMe latest news reports that the company has experienced a huge decline in stock value, with shares dropping over 70% just this year.
After going public in 2021 with a $6 billion valuation, the company’s current market cap has plummeted to around $116 million. The company underwent a 1-for-20 reverse stock split to prevent delisting from the Nasdaq exchange.
In December of the previous year, 23andMe latest news highlighted a data breach impacting millions of users. Hackers accessed data of approximately 6.9 million users, which included ancestry information, family trees and geographic locations, but fortunately did not include sensitive DNA data.
Security concerns around genetic information continue to be a concern for the company and regulatory bodies in Canada and the UK have launched investigations into the breach to safeguard sensitive data.
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The 23andMe latest news also brought attention to a sudden board restructuring with seven of the company’s eight independent directors resigning in September.
The directors stepped down after not receiving an agreeable buyout offer from CEO Anne Wojcicki, who has since expressed interest in taking the company private.
23andMe latest news shows the company incurred losses between $1 million and $2 million in onetime expenses. These losses strain the company’s financial stability and have concerns regarding the company’s capacity to protect user data.
Although 23andMe latest news confirms the discontinuation of the therapeutics division, the company has not entirely abandoned the clinical and preclinical stage assets it developed.
Two main assets were being tested for their potential to target cancer cells by enhancing immune response. These include, 23ME-00610, an immune checkpoint blocker being tested for efficacy in treating various types of tumors.
23ME-01473, a drug targeting immune suppression mechanisms in cancer cells. The company plans to seek partnerships or licensing options to keep these assets in development under a new buyer.
Following 23andMe latest news about restructuring, the company’s stock saw a slight uptick in after-hours trading, showing a 5% increase.
The company announced a plan to provide severance packages and transitional support for the laid-off employees.
According to 23andMe latest news, the layoffs will incur a one-time cost of $12 million, which will include severance payments and other support.
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