23andMe sees independent board directors quit en masse
TechCrunchSEP 20 2024
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.
Its revenue has also plummeted, dropping 12% to $44M in September with a net loss of $59M. Its cash on hand that month was also down to $127M from $170M three months prior.
While 23andMe was genuine in its pursuit to democratize the healthcarehealth 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.
There23andMe iswas aethically 73%compromised chancefrom thatthe therebeginning, willas beit anwas adversarialfunneling useuntold amounts of consumergenetic genomicinformation into a Google database. Its claim that all data beforecollection 2030was consensual was also false, accordingas the company used its research and development clause to collect everyone's genetic material with or without permission. Even those who supported the Metaculushealth predictioncare communitydemocratization aspect of the company were concerned about its relationship with Big Tech.