23andMe, the genetics company known for its consumer DNA testing services, has reported a decline in revenue and announced a significant reduction in its workforce.
The company generated $44.1 million in revenue for the fiscal second quarter, down from $50 million during the same period last year. As part of a broader restructuring strategy, 23andMe plans to cut 40% of its workforce, which amounts to over 200 jobs, and discontinue its therapeutics business.
The company's net loss has narrowed, standing at $59.1 million, or $2.32 per share, compared to a loss of $75.27 million, or $3.17 per share, a year earlier. To maximize the value of its therapeutic programs, 23andMe is exploring strategic options such as asset sales and licensing agreements. The company is also winding down its ongoing clinical trials and considering raising additional capital.
The stock has experienced a significant decline this year, and the leadership at 23andMe has undergone changes. CEO Anne Wojcicki has expressed her intention to take the company private. The market's reaction to 23andMe's recent announcements has been mixed, with some investor optimism but overall cautious sentiment.
The company's focus will likely remain on its core consumer business and research partnerships as it navigates the challenges it faces.