23andMe reports sales decline a day after announcing plans to cut 40% of workforce
Embattled genetic testing provider 23andMe said Tuesday that revenue declined from a year earlier, a day after the company announced a cost-cutting plan.
23andMe on Tuesday reported declining revenue in its most recent quarter, a day after the company said it will cut 40% of its workforce and shutter its therapeutics business as part of a business restructuring plan.
The embattled genetics company reported $44.1 million in revenue for the 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 that it's eliminating more than 200 jobs, discontinuing all its therapeutics programs and winding down its ongoing clinical trials "as quickly as practical." It's evaluating strategic options such as asset sales and licensing agreements to "maximize the value" of the therapeutic programs, the release 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," 23andMe CEO Anne Wojcicki, said in the release Monday. "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."
The company said Tuesday that it's looking to potentially raise additional capital.
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