Struggling 23andMe Makes ‘Difficult’ Decision To Cut Workforce by 40%

Flailing genetics testing firm 23andMe is cutting over 200 jobs, or roughly 40% of its workforce. Its therapeutics division will also be shut down as the company’s “difficult but necessary actions” will help refocus efforts toward its core business.

23andMe expects the layoffs and business restructuring will reduce costs by $35 million per year. For severance payments and other related expenses, the company will pay around $12 million.

The company has been consistently losing money, posting yet another loss in the previous quarter. In its earnings report for fiscal Q2 2025, 23andMe reported a net loss of $59.1 million. In the same period last year, the company was in the red by $75.3 million. For fiscal year 2024, the company reported a net loss of $667 million.

Revenue also dropped this quarter to $44.1 million, down from $50 million year over year. Declining research revenue and poor sales of testing kits and telehealth services were blamed for the weak results.

The Downfall of 23andMe

23andMe has been through a tough couple of years. In September, the company board unanimously resigned. After failed negotiations with CEO Anne Wojcicki related to taking 23andMe private, the company’s seven independent directors walked out, saying they did not receive a reasonable offer and did not agree with the company’s direction. With Wojcicki standing alone, three new directors were brought in last month to help guide the company.

A year ago, the DNA profiles and information related to 6.9 million 23andMe customers were stolen. While the company denied any wrongdoing, it ultimately settled a lawsuit resulting from the data breach. The settlement included 23andMe shelling out a total of $30 million in cash payments to affected customers as well as providing free health profile monitoring and cybersecurity audits for the next three years.

As the 23andMe layoffs occur, the company will terminate any ongoing clinical trials as soon as possible. Additionally, it will pursue asset alternatives for its drug development and research programs.