23andMe reports sales decline a day after announcing plans to cut 40% of workforce
David Paul Morris | Bloomberg | Getty Photos
23andMe on Tuesday reported declining earnings in its latest quarter, a day after the corporate acknowledged this may per chance presumably per chance additionally honest reduce 40% of its crew and shutter its therapeutics alternate as fragment of a alternate restructuring knowing.
The embattled genetics company reported $44.1 million in earnings for the fiscal 2d quarter, down from $50 million within the identical period closing yr. 23andMe’s catch loss narrowed to $59.1 million, or $2.32 per portion, from $75.27 million, or $3.17 per portion, a yr ago.
23andMe acknowledged Monday that it be placing off extra than 200 jobs, discontinuing all its therapeutics programs and winding down its ongoing scientific trials “as hasty as practical.” It be evaluating strategic alternatives equivalent to asset gross sales and licensing agreements to “maximize the cost” of the therapeutic programs, the liberate acknowledged.
“We’re taking these refined but well-known actions as we restructure 23andMe and tackle the lengthy-period of time success of our core user alternate and analysis partnerships,” 23andMe CEO Anne Wojcicki, acknowledged within the liberate Monday. “I want to thank our team for their laborious work and dedication to our mission. We’re fully committed to supporting the employees impacted by this transition.”
The company acknowledged Tuesday that it be having a seek to doubtlessly elevate additional capital.
Shares of 23andMe were down a cramped on Tuesday. They’ve slumped 75% this yr after losing extra than half of their price in 2023, pushing the corporate’s market cap in direction of $100 million.
Wojcicki, who co-founded 23andMe in 2006, has been working to retain the corporate afloat after it faced the menace of being delisted from the Nasdaq. Shares were hovering beneath $1 until 23andMe announced a 1-for-20 reverse stock spoil up in October.
In September, all seven of the corporate’s autonomous administrators without warning resigned from the board, writing in a letter that they disagreed with Wojcicki about the “strategic path for the corporate.” Three new autonomous administrators were appointed to the board in late October.
“We catch fulfilled our responsibilities as a public company and regained compliance with the NASDAQ checklist requirements by reconstituting our board and executing a reverse stock spoil up,” Wojcicki acknowledged all the strategy in which thru 23andMe’s earnings call Tuesday.
Wojcicki has over and over acknowledged she intends to rob 23andMe private, even though she didn’t address the plans Tuesday. In a September filing with the SEC, she acknowledged she wouldn’t retain in mind third-birthday celebration takeover proposals, and acknowledged the “simplest path forward” is for her to rob the corporate private.
23andMe declined to commentary.
