23andMe is undergoing a significant restructuring, which includes the discontinuation of its therapeutics division and a reduction of its workforce by 40%, impacting more than 200 employees. The company announced these changes on Monday, citing a need to cut costs and refocus on its core consumer business and research partnerships.
The decision to halt the therapeutics division means 23andMe will wind down ongoing clinical trials and evaluate strategic alternatives for its drug development and research assets, including potential cancer treatments. CEO Anne Wojcicki stated that these actions are "difficult but necessary" for the company's long-term success.
This restructuring comes during a turbulent period for 23andMe. The company has faced a high-profile data breach, multiple rounds of layoffs, and substantial financial losses that have negatively impacted its stock price. In September, all of 23andMe’s independent directors resigned from its board following disagreements with Wojcicki regarding the company's future direction.
23andMe went public in 2021 and has since struggled to achieve a profitable business model. The company reported a net loss of $667 million for its last fiscal year, more than double the $312 million loss from the previous year. While the net loss for the second quarter of the 2025 fiscal year was lower at $59.1 million compared to $75.3 million the year prior, revenue also decreased from $50 million to $44.1 million.
The company anticipates that the job cuts and other restructuring efforts will reduce operating expenses by more than $35 million annually. However, 23andMe expects to incur up to $12 million in costs related to severance and termination-related expenses. As of the end of the quarter, 23andMe had $127 million in cash and cash equivalents, down from $216 million on March 31, 2024. Last month, 23andMe completed a 1-for-20 reverse stock split.
