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The struggling genetic testing company 23andMe says it will cut 40% of its workforce, or 200 jobs, as it fights for survival. The once-popular DNA-testing site will also halt work on therapies it was developing. Last year, the company said hackers had managed to gain access to personal information of millions of its users.
23andMe's share price has fallen by more than 70% this year, as its co-founder and chief executive Anne Wojcicki tries to turn the business around. The company said it expects to incur one-off costs of $12m (£9.3m), including severance pay, for the plan that will result in savings of $35m.
"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," Ms Wojcicki said. The company also said it is considering what to do with the therapies it had in development, including licensing or selling them. 23andMe is a giant of the growing ancestor-tracing industry.
It offers genetic testing from DNA, with ancestry breakdown and personalised health insights. In December last year, 23andMe confirmed that hackers had accessed details of about 6.9 million of its users.
In some cases this included family trees, birth years and geographic locations, the company said. But the stolen data did not include DNA records, it said. Its customers famous names, including rapper Snoop Dogg and multi-billionaire investor Warren Buffett.
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