DNA-testing company 23andMe Holding Co. will slash its workforce by about 40% and discontinue its therapeutics program as part of a restructuring effort to cut costs, the company said Monday.
The layoffs will affect about 200 employees, 23andMe said in a statement. The company said it will also explore “strategic alternatives” for its clinical and preclinical assets. The restructuring is expected to save the company about $35 million in annualized costs.
23andMe stock ME2.90% jumped more than 5% in after-hours trading following the announcement. Still, shares are down about 75% year to date.
“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,” co-founder and Chief Executive Anne Wojcicki said in a statement. “I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting the employees impacted by this transition.”
23andMe said it intends to wind down its ongoing clinical trials as soon as is practical, as it seeks to “maximize the value of its therapeutics programs.”
“We continue to believe in the promise shown by our clinical and preclinical stage pipeline and will continue to pursue strategic opportunities to continue their development,” Wojcicki said.
In September, 23andMe’s independent board members resigned en masse over a dispute with Wojcicki’s plans to take the company private. Last month, it made moves to rebuild its board and underwent a 1-for-20 stock split for its Class A and B shares.
Once a booming consumer-health company, 23andMe went public in 2021 and grew to a market valuation around $6 billion. The stock has plunged 98% from its 2021 peak, and as of Monday, the company had a market cap of about $116 million.