23andMe is laying off 40 percent of its employees, or over 200 workers, as the company attempts to recover from last year’s massive data breach and reverse its plummeting stock price. The genetic testing company also announced that it will shut down its therapeutics business.
Though 23andMe says the restructuring plan will cost it around $12 million, it expects to save more than $35 million as a result, while “substantially” lowering operating expenses. 23andMe’s therapeutics division, which studied potential cancer treatments using its database of genetic material, will end all clinical trials, as the company considers licensing agreements or asset sales to “maximize” the program’s value.
“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,” Wojcicki said in a statement.
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