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23andMe Announces Major Workforce Reductions Amid Restructuring Efforts
In a significant move to stabilize its operations, 23andMe has revealed plans to reduce its workforce by 40 percent, equating to over 200 employees. This decision comes in the wake of a substantial data breach last year and an ongoing decline in stock performance.
Restructuring Strategy and Financial Implications
The company anticipates that this restructuring initiative will incur costs of approximately $12 million. However, it projects savings exceeding $35 million as it aims to significantly decrease operational expenses. Additionally, the therapeutics division of 23andMe, which focused on exploring cancer treatment options through its genetic database, will cease all clinical trials. The firm is now contemplating licensing agreements or asset divestitures to optimize the value derived from this program.
A Year of Challenges for 23andMe
The past year has been particularly challenging for 23andMe as it navigates through various obstacles…
To read more about these developments and their implications for the future of genetic testing companies like 23andMe, click here…
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