Genetic testing company 23andMe is cutting its workforce by around 40 per cent as part of a new business restructuring plan designed to streamline operations and reduce costs.

The company will axe around 200 jobs as it looks to reduce operating expenses and make annual cost savings of over $35 million.

The company said it expects to incur up to $12 million in costs and expenses related to the redundancies.

23andMe has seen its share prices drop significantly since the business was hit by a huge data breach last year.

In October 2023, the company was targeted by bad actors that used a process called “credential stuffing” to steal login credentials and gain access to accounts on other systems.

Around seven million people were affected by the hack due to a feature which allows DNA-related people to contact each other.

The data breach prompted an investigation by the Information Commissioner’s Office (ICO) and the Office of the Privacy Commissioner of Canada (OPC).

Additionally, 23andMe announced it is discontinuing further development of all its therapeutics programmes, with the company exploring options including licensing agreements, asset sales or other transactions.

It intends to wind-down ongoing clinical trials as quickly as is practical while it looks for alternative solutions.

The company’s current therapeutic programmes include an antibody which is designed to restore the immune system’s ability to kill cancer cells and a programme for difficult-to-treat solid tumours.

“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,” said Anne Wojcicki, 23andMe’s chief executive, co-founder and chair of the board. “I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting the employees impacted by this transition.”

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