23andMe cuts 40% of its workforce, discontinues all therapy programs (updated)

Chrome Holding Co

11/11/2024 23:00

(Adds CEO quote in paragraph 2, background in paragraphs 3 to
5)
       Nov 11 (Reuters) - Genetic testing firm 23andMe  ME.O 
said on Monday it is reducing about 40%, or 200 employees, from
its workforce and discontinuing further development of all its
therapies as part of a restructuring program.
    "We are taking these difficult but necessary actions as we
restructure 23andMe and focus on the long-term success of our
core consumer business and research partnerships," said CEO Anne
Wojcicki.
    The company said it is evaluating strategic alternatives,
including licensing agreements and asset sales, for its
therapies in development.
        Wojcicki, who has been trying to take the company
private since April, is facing a tough challenge after
independent directors of 23andMe resigned in September, after
not receiving a satisfactory take-private offer from the CEO.
    In July, the CEO and co-founder proposed to acquire all
outstanding shares of the firm not already owned by her or her
affiliates for 40 cents each.
        After Monday's restructuring plan, the company expects
annualized cost savings of more than $35 million.

 (Reporting by Christy Santhosh in Bengaluru; Editing by
Shailesh Kuber)
 ((Christy.Santhosh@thomsonreuters.com;))