23andMe announces a 40% workforce reduction ahead of the holidays

SOUTH SAN FRANCISCO, California. – Now, DNA site 23andMe is announcing a major budget cut just before the holidays — the latest setback for the struggling South San Francisco startup.

According to one Corporate news item from Momday23andMe is considering cutting about 40% of its workforce, which amounts to about 200 employees.

“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer businesses and research partnerships,” CEO Anne Wojcick said in a statement. “I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting the employees affected by this transition.”

This is the third major setback for 23andMe.

Just last month, the board resigned while the CEO was in the process of taking the company private.

The company has now appointed a new board.

23andMe also suffered a major data breach and some are concerned that their private data has been sold to the dark web.

There are now concerns about what could happen to DNA provided to the company if operations continue to slow.

“I see other companies buying data, insurance companies for starters,” technology expert Juan Guevara Torres told KTVU. “Especially health insurers.”

23andMe also announced it would shut down a number of other programs, such as its therapeutics division and clinical trials.

The company said it will pay approximately $12 million in one-time severance payments.

These layoffs and the company’s restructuring model are expected to save 23andMe approximately $30 million per year.