23andMe cuts 40 per cent of its workforce, discontinues all therapy programs
Genetic testing firm 23andMe said on Monday it is reducing about 40 per cent, or 200 employees, from its workforce. (Smith Collection/Gado/Archive Photos/Getty Images via CNN Newsource)
Genetic testing firm 23andMe said on Monday it is reducing about 40 per cent, or 200 employees, from its workforce and discontinuing further development of all its therapies as part of a restructuring program.
“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,” said CEO Anne Wojcicki.
The company said it is evaluating strategic alternatives, including licensing agreements and asset sales, for its therapies in development.
Wojcicki, who has been trying to take the company private since April, is facing a tough challenge after independent directors of 23andMe resigned in September, after not receiving a satisfactory take-private offer from the CEO.
In July, the CEO and co-founder proposed to acquire all outstanding shares of the firm not already owned by her or her affiliates for 40 cents each.
After Monday’s restructuring plan, the company expects annualized cost savings of more than US$35 million.
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