Barron's Roundtable panelists discuss the latest headlines about 23andMe and share their top stocks.
Genetic testing company 23andMe announced Monday that it will cut its workforce by 40%, or more than 200 people.
The job cuts come as 23andMe seeks to restructure to “streamline operations and reduce costs.”
“We are taking these difficult but necessary steps as we rebuild 23andMe and focus on the long-term success of our core consumer business and research partnerships,” CEO Anne Wojcicki said in a statement.
A logo sign on the facade of personal genomics company 23andMe in Mountain View, California, October 28, 2018. (Photo by Smith Collection/Gado/Getty Images) (The Smith Collection/Gado/Getty Images/Getty Images)
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The company said the restructuring could cost up to $12 million.
Overall, the company expects to save more than $35 million annually from the restructuring and related “significant” reductions in operating expenses.
23andMe also said it would end development of the treatment.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| myself | 23andme Holding Company | 4.67 | +0.06 |
+1.30% |
For a “limited time period,” the company said it will explore “strategic options,” including licensing agreements, asset sales and transactions, to “maximize the value of our treatment programs.”
23ANDME agrees to pay $30 million to settle 2023 data breach lawsuit
23andMe noted that there is “no guarantee that the strategic replacement process for therapeutic assets will result in any action, nor is there a definitive timeline for completion.”
23andMe stock has fallen nearly 75% this year.
23andMe's independent directors resigned from the board in September after failing to receive a satisfactory take-private offer from Wojcicki.
Earlier that month, the company paid $30 million and provided three years of security oversight to settle a lawsuit accusing it of failing to protect the privacy of 6.9 million customers whose personal information was exposed in a data breach last year. agreed to do so.
The job cuts come as 23andMe seeks to restructure to “streamline operations and reduce costs.” (Photo illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
Wojcicki said Tuesday during 23andMe's quarterly earnings call that the company “continues to prioritize driving recurring revenue through our subscription business in addition to growing our research partnership business as we look to the future.” .
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The company first became known for the genetic testing kits it sells to consumers. He then delved deeper into treatment research and other efforts.
Reuters contributed to this report
