Genetics company 23andMe recently reported a decline in revenue for its most recent quarter, with revenue dropping from $50 million to $44.1 million compared to the same period last year. The company also announced a net loss of $59.1 million, down from $75.27 million a year ago. As a result, 23andMe stated that it will be cutting 40% of its workforce and shutting down its therapeutics business as part of a restructuring plan.
CEO Anne Wojcicki expressed the company's commitment to supporting employees impacted by the transition and emphasized a focus on the long-term success of their core consumer business and research partnerships. The company is also exploring strategic options such as asset sales and licensing agreements to maximize the value of its therapeutic programs.
Shares of 23andMe have taken a significant hit this year, with a 75% decline in value, pushing the company's market cap towards $100 million. The company faced the risk of being delisted from the Nasdaq but managed to regain compliance by reconstituting its board and executing a reverse stock split.
Wojcicki has been working to keep the company afloat amidst challenges, including the abrupt resignation of all seven independent directors last year. Three new independent directors were appointed in late October. Despite rumors of taking 23andMe private, Wojcicki did not address those plans during the recent earnings call.
Overall, 23andMe's financial struggles and restructuring efforts highlight the challenges facing the company as it navigates a changing market landscape. The future remains uncertain as the company looks to potentially raise additional capital and explore new strategic opportunities to drive growth and sustainability.