A banner at 23andMe headquarters in Sunnyvale, California, US, on Wednesday, January 27, 2021.
David Paul Morris | Bloomberg | Getty Images
23andMe On Tuesday, it reported a decline in revenue in the fourth quarter, a day after the company announced it would cut 40% of its workforce and close its therapeutics business as part of a business restructuring plan.
The beleaguered genetics company reported revenue of $44.1 million for its fiscal second quarter, down from $50 million in the same period last year. 23andMe's net loss narrowed to $59.1 million, or $2.32 per share, from $75.27 million, or $3.17 per share, a year ago.
23andMe said Monday it would cut more than 200 jobs, halt all of its treatment programs and end its ongoing clinical trials “as quickly as possible.” It is evaluating strategic options such as asset sales and licensing agreements to “maximize the value” of therapeutic programs, the statement said.
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships,” Anne Wojcicki, CEO of 23andMe, said in a statement Monday. “I would like to thank our team for their hard work and dedication to our mission. We are fully committed to supporting employees impacted by this transition.”
The company said Tuesday it is looking to raise additional capital.
23andMe shares fell slightly on Tuesday. It is down 75% this year after losing more than half its value in 2023, pushing the company's market value toward $100 million.
Wojcicki, who co-founded 23andMe in 2006, is working to keep the company afloat after it faced delisting from the Nasdaq. Shares were hovering below $1 until 23andMe announced a 1-for-20 reverse stock split in October.
In September, all seven of the company's independent directors abruptly resigned from the board, writing in a letter that they disagreed with Wojcicki about the “strategic direction of the company.” Three new independent directors were appointed to the board in late October.
“We fulfilled our obligations as a public company and regained compliance with Nasdaq listing standards by reconstituted the board of directors and implemented a reverse stock split,” Wojcicki said during 23andMe's earnings call on Tuesday.
Wojcicki has repeatedly said she intends to take 23andMe private, though she did not talk about the plans Tuesday. In a filing with the Securities and Exchange Commission in September, it said it would not consider third-party takeover proposals and said the “best path forward” was to take the company private.
23andMe declined to comment.
Watch: The rise and fall of 23andMe
