23andMe Announces Restructuring, Layoffs, and Therapy Development Halt
Genetic testing company 23andMe announced a significant restructuring plan on Monday, including a 40% workforce reduction (approximately 200 employees) and the discontinuation of further development for all its therapies.
CEO Anne Wojcicki explained the decision as a necessary step to restructure the company and prioritize the long-term success of its core consumer business and research partnerships.
The company is currently exploring strategic alternatives for its therapies in development, including licensing agreements and asset sales.
This restructuring comes amidst challenges faced by Wojcicki, who has been attempting to take the company private since April. Independent directors resigned in September after deeming her take-private offer unsatisfactory. In July, Wojcicki proposed acquiring all outstanding shares not already owned by her or her affiliates for 40 cents each.
The restructuring plan is expected to generate annualized cost savings of more than $35 million.