23andMe Lays Off 40% of Staff, Dissolves Therapeutics Division
Turbulent times persist for the biotech company
23andMe is laying off 40% of its workforce and sunsetting its therapeutics programs as part of an effort to streamline operations and reduce costs.
The restructuring will affect over 200 employees at the human genetics and preventive health company.
Once valued at $6 billion after going public in 2021, 23andMe’s shares have since plummeted to under $5. In its recently released Q2 2025 financials, the company reported $44 million in revenue, a 12% decline from $50 million in the same period last year.
In a statement, Anne Wojcicki, 23andMe’s CEO, co-founder and chair of the board, said the actions are “difficult but necessary” as the company focuses on the “long-term success” of its “core consumer business and research partnerships.”
Wojcicki thanked the team and said the company is “fully committed” to supporting the impacted employees.
The California-based company, founded in 2006, has faced significant challenges in recent months. In September, all seven of 23andMe’s board of directors collectively resigned,citing differences over the company’s “strategic direction” following Wojcicki’s interest in taking 23andMe private. The company also settled a $30 million lawsuit this fall related to a 2023 data breach that affected its customers.
As 23andMe winds down its ongoing clinical trials, the company says it’s exploring “strategic options” for a limited time to maximize the value of its therapeutics programs, including licensing agreements, asset sales or other transactions.
“We continue to believe in the promise shown by our clinical and preclinical stage pipeline and will continue to pursue strategic opportunities to continue their development,” Wojcicki said. “We remain deeply grateful to the patients, investigators and study staff for their participation in our clinical trials.”
