The restructuring arrives during a period of turmoil at 23andMe, which has recently included a high-profile data breach and several rounds of previous layoffs.
As the faltering genetic testing firm looks to cut expenses, 23andMe is terminating its pharmaceuticals section and laying off 40% of its personnel, or more than 200 workers.
23andMe revealed its most recent reorganization initiatives on Monday. According to the business, it intends to conclude ongoing clinical trials “as quickly as practical” and is now considering “strategic alternatives” for assets associated with its research and drug development initiatives, which include tests on possible cancer therapies.
As the firm concentrates on “the long-term success of our core consumer business and research partnerships,” 23andMe CEO and co-founder Anne Wojcicki said in a prepared statement that the company was “taking these difficult but necessary actions.”
The reorganization comes at a time when 23andMe, a California-based firm, has been going through a lot of upheaval, including a high-profile data breach, many rounds of layoffs, and mounting losses that have caused the stock to plummet in recent years.
All of 23andMe’s independent directors also left the board back in September, which was an unusual step after protracted talks with Wojcicki, who has been attempting to take the business private. The seven departing directors noted a “clear” disagreement on 23andMe’s future and stated that they had not yet received a sufficient sale proposal from the CEO.
Wojcicki stated at the time that she was “surprised and disappointed” by the resignations, but she insisted that it would be preferable for the firm in the long run to take 23andMe private and “outside of the short-term pressures of the public markets.”
Following Wojcicki’s departure as the only board member for almost a month, 23andMe declared in late October that it had added three new independent members.
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After going public in 2021, 23andMe has had trouble establishing a successful business plan, especially because the majority of its saliva-based testing kits only need a single purchase. The company’s most recent fiscal year had a net loss of $667 million, more than twice as much as the $312 million it recorded the year before.
Although it was less severe than in prior quarters, 23andMe reported another loss in its quarterly profits, which were made public on Tuesday. In the second quarter of the 2025 fiscal year, the corporation recorded a net loss of $59.1 million, down from a loss of $75.3 million in the same period the year before.
However, revenue decreased from $50 million in the previous year to $44.1 million in the second quarter. The business reported a decline in research income, a decline in testing kit sales, and a decline in telehealth orders, but claimed that these were somewhat offset by an increase in membership services.
23andMe expects to save over $35 million a year by cutting operational costs as a result of the job losses and other restructuring measures announced Monday. Additionally, 23andMe anticipates spending up to $12 million, mostly for one-time severance and other costs associated with termination.
As of the end of the quarter, 23andMe had $127 million in cash and cash equivalents, down from $216 million on March 31, 2024.
23andMe finished a 1-for-20 reverse stock split last month. By Tuesday noon, shares were down over 4%, trading at about $4.43.