23andMe Announces Major Restructuring, Lays Off 200 Employees, Shifts Focus from Drug Development to Core Genetic Testing

23andMe is grappling with significant financial difficulties, prompting the company to announce a major restructuring that includes laying off over 200 employees, which constitutes about 40% of its workforce[1][2]. This downsizing is part of a broader strategy to cease its drug development efforts and refocus resources on its core genetic testing services. These measures are expected to save over $35 million annually[1][2]. Despite going public in 2021 with a $3.5 billion valuation, the company's stock value has plummeted, and it reported a 12% year-over-year revenue decline in the second quarter of fiscal 2025, alongside a net loss of $59.1 million[1][2]. These financial strains are compounded by leadership challenges, including board resignations following CEO Anne Wojcicki's rejected proposal to take the company private[1]. Despite these hurdles, 23andMe recently regained Nasdaq compliance and aims to explore new business opportunities through refined focus on its consumer-based services[1].