23andMe is cutting 40% of its staff and halting all therapy programs

CNN
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Genetic testing company 23andMe said Monday that it would cut about 40%, or 200, employees and stop further development of all of its therapies as part of a restructuring program.

“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer and research partnerships businesses,” said CEO Anne Wojcicki.

The company said it is evaluating strategic alternatives, including licensing agreements and asset sales, for its therapies in development.

Wojcicki, who has been trying to take the company private since April, faces a major challenge after independent directors of 23andMe resigned in September after failing to receive a satisfactory takeover offer from the CEO.

In July, the CEO and co-founder proposed purchasing all of the company's outstanding shares not already owned by him or her affiliates for 40 cents each.

Under Monday's restructuring plan, the company expects annual cost savings of more than $35 million.