US genetic testing company 23andMe announced that it's laying off 40% of its staff, or about 200 employees, as well as shutting down its drug development business.
This comes as the company, which said the layoffs will impose a one-time $12M cost but save $35M, has reportedly seen its stock price drop more than 70% this year.
While 23andMe was genuine in its pursuit to democratize the health care industry, it stretched itself too thin by attempting multiple unproven businesses simultaneously. By shifting to genetic testing without retaining a strong ancestry-focused service, it was left vulnerable and ultimately killed by federal regulation. 23andMe shouldn't have put all of its eggs into one basket without knowing they would hatch.
23andMe was ethically compromised from the beginning, as it was funneling untold amounts of genetic information into a Google database. Its claim that all data collection was consensual was also false, as the company used its research and development clause to collect everyone's genetic material with or without permission. Even those who supported the health care democratization aspect of the company were concerned about its relationship with Big Tech.