DNA-testing site 23andMe to lay off 40% of its workers

The struggling genetic testing company 23andMe says it will cut 40% of its workforce, or 200 jobs, as it fights for survival.

The once-popular DNA-testing site will also halt work on therapies it was developing.

Last year, the company said hackers had managed to gain access to personal information of millions of its users.

23andMe's share price has fallen by more than 70% this year, as its co-founder and chief executive Anne Wojcicki tries to turn the business around.

On Tuesday, the company warned investors of "substantial doubt" about its ability to continue operating, as it reported that revenue had fallen to $44m (£35m) between July and September compared to $50m in the same period last year.

Losses fell to $59m from $75m.

The job cuts are expected to lead to one-off costs of $12m, including severance pay, for the plan that will result in savings of $35m.

"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," Ms Wojcicki said.

The company also said it is considering what to do with the therapies it had in development, including licensing or selling them.

23andMe is a giant of the growing ancestor-tracing industry. It offers genetic testing from DNA, with ancestry breakdown and personalised health insights.

Its customers include famous names, from rapper Snoop Dogg to multi-billionaire investor Warren Buffett.

The company was valued at roughly $3.5bn when it listed on the Nasdaq stock exchange in 2021 and its share price peaked at $17.65.

But they have since tumbled and are currently trading at less than $5.

Last December, the challenges facing 23andMe mounted after it confirmed that hackers had accessed details of about 6.9 million of its users.

In some cases this included family trees, birth years and geographic locations. But the stolen data did not include DNA records, it said.

The hackers logged into 23andMe accounts by using email and password details previously exposed by other breaches.

They downloaded not only the data from those accounts but the private information of all other users they had links to across the family trees on the website.

In June, data watchdogs in the UK and Canada announced investigations into the breach.

At the time, a statement from the UK's Information Commissioner's Office said "23andMe is a custodian of highly sensitive personal information, including genetic information which does not change over time."

"This makes public trust in these services essential," it added.

In another blow to the company, seven of 23andMe’s eight-strong board resigned in September.

The firm's independent directors said they had stepped down after not receiving a satisfactory buyout offer from Ms Wojcicki.