23andMe layoffs signal market downturn
The market for consumer genetic testing may be trending down. The latest evidence: 23andMe will be laying off about 100 people, or 14% of its staff, thanks to declining sales of its $99 spit kits. CEO Anne Wojcicki said she isn't sure why the market is starting to turn — but suspects that privacy concerns may play a role.
“This has been slow and painful for us,” Wojcicki told CNBC.
It’s not just 23andMe feeling the pressure. Illumina CEO Francis deSouza told investors last summer that there was a “weakness” in the DTC market, and that his company was taking a "cautious view" when it comes to ancestry and health tests.
Of course, this isn’t the first time 23andMe has needed to trim its staff: There were reductions in both 2009 and 2016.
The layoffs could suggest a slight strategy shift for 23andMe, STAT's Erin Brodwin writes. Earlier this month, company sold the rights to a new drug that it had developed in-house, using insights gleaned from mining customer genetic data.
Read more.
Of course, this isn’t the first time 23andMe has needed to trim its staff: There were reductions in both 2009 and 2016.
The layoffs could suggest a slight strategy shift for 23andMe, STAT's Erin Brodwin writes. Earlier this month, company sold the rights to a new drug that it had developed in-house, using insights gleaned from mining customer genetic data.
Read more.
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