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23andMe to cut its work force by 40%
23andMe to cut its work force by 40%.
SOUTH SAN FRANCISCO, Calif. - DNA site 23andMe is now announcing a big cut just before the holidays – the latest setback for the struggling South San Francisco startup.
According to a Momday company news release, 23andMe is looking at slashing about 40% of its workforce, which is roughly 200 employees.
"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," CEO Anne Wojcick 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."
This is the third major setback for 23andMe.
Just last month, the board resigned while its CEO worked to take the company private.
The company has since appointed a new board.
23andMe also suffered a massive data breach and some worry that their private data was sold to the dark web.
There are concerns now about what could happen to DNA submitted to the company if operations continue to slow.
"I can see other companies buying that data, insurance companies to begin with," technology expert Juan Guevara Torres told KTVU. "Especially health insurance companies."
23andMe also announced it would discontinue a number of other programs, like its therapeutics division and clinical trials.
The company said it will pay about $12 million in one-time severance pay.
These layoffs and the company's restructuring model is expected to save 23andMe about $30 million a year.