Struggling Genetic Testing Company 23andMe To Lay Off 40% Of Its Workforce, Discontinues All Therapeutic Programs

On Thursday, genetics-led consumer healthcare company 23andMe Holding Co. ME announced a business restructuring to streamline operations and reduce costs.

In addition, 23andMe is discontinuing the further development of all its therapeutic programs while evaluating strategic alternatives for its clinical and preclinical assets.

Also Read: Legal Battle Brews Over 23andMe’s Customer Data Breach Settlement And Arbitration Claimants

The company is reducing its overall headcount by over 200 employees, representing approximately 40% of the workforce.

The business restructuring is expected to substantially reduce operating expenses and result in annualized cost savings of more than $35 million. The company expects to incur up to $12 million in costs and expenses.

“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 Anne Wojcicki, 23andMe’s CEO, Co-Founder, and Chair of the Board.

The company is actively exploring all strategic options in parallel with discontinuing its therapeutics division.

23andMe intends to wind down its ongoing clinical trials as quickly as practical while the strategic alternatives process continues.

The company’s therapeutic programs include 23ME-00610 (a Phase 1/2a therapeutic antibody that is designed to restore the immune system’s ability to kill cancer cells by blocking the immune checkpoint CD200R1), 23ME-01473 (a Phase 1 therapeutic antibody that targets ULBP6, which can be expressed and secreted by tumor cells to suppress immune activity), and other preclinical immunology and inflammation programs.

In September, independent directors of the Board of 23andMe sent a letter to Anne Wojcicki, Chief Executive Officer, Co-Founder, and Chair of the Board of Directors of 23andMe, providing their resignation, effective immediately.

Also, 23andMe reported second-quarter 2025 sales of $44.1 million, down from $50 million a year ago, missing the consensus of $54.3 million.

The decrease was primarily driven by lower consumer services revenue, mainly due to lower PGS kit sales volume and telehealth orders, as well as lower research services revenue as the GSK Plc collaboration exclusive discovery term concluded in July 2023.

Adjusted EBITDA was a loss of $33 million compared to a loss of $45 million a year ago. The company reported a loss per share of $2.32 compared to a $3.17 loss a year ago.

Price Action: ME stock traded higher by 0.43% at $4.63 at the last check Tuesday.

Photo via Shutterstock

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