DNA-testing giant 23andMe announced a 40% workforce reduction, affecting over 200 employees, as part of a larger restructuring strategy led by CEO Anne Wojcicki to address ongoing financial struggles. This overhaul includes the shutdown of its drug development division, which had previously conducted human trials for advanced drug candidates now slated for sale. Once viewed as a key growth avenue, drug development has been central to 23andMe’s long-term strategy of monetizing its expansive genetics data. In August, the company closed its drug discovery unit, which had focused on identifying new therapeutic possibilities.

Despite the pivot, 23andMe aims to license its genetics data to pharmaceutical partners, though no new partnerships have been announced since it ended exclusivity with pharma giant GSK. Financially, the company reported a 12% year-over-year revenue decline to $44 million in its September quarter, with a $59 million net loss and a cash reserve down to $127 million. Since early 2023, 23andMe has gone through five layoff rounds, reducing its workforce from over 800 employees to around 300. Monday’s restructuring, expected to save $35 million annually, comes as 23andMe’s stock value remains at all-time lows, with its market cap sometimes falling below cash levels on hand.