23andMe is a genetic testing company. It is having big problems and will cut 200 jobs, which is 40% of its workers. The company will also stop working on new therapies. Last year, hackers stole personal information from millions of users.
This year, 23andMe’s stock price has fallen over 70%. The company’s president, Anne Wojcicki, wants to make the business better. On Tuesday, 23andMe told investors it might have trouble staying open. The company made $44 million from July to September, down from $50 million the year before. They lost $59 million, but this was less than the $75 million loss from before.
The job cuts will cost $12 million, including severance pay, but they hope to save $35 million. Wojcicki said these changes are hard but necessary for the company’s future.
23andMe helps people learn about their ancestry and health through DNA testing. Famous people, like rapper Snoop Dogg and investor Warren Buffett, use 23andMe. The company was once worth around $3.5 billion but is now worth less than $5 a share.
Vocabulary List:
- Ancestry /ˈæn.səs.tri/ (noun): One’s family or ethnic descent; lineage.
- Therapies /ˈθɛrəˌpiz/ (noun): Treatments intended to relieve or heal a disorder.
- Severance /ˈsɛvərən(t)s/ (noun): The action of ending a connection or relationship especially an employment relationship.
- Investment /ɪnˈvɛst.mənt/ (noun): The action or process of investing money for profit.
- Stock /stɑk/ (noun): The capital raised by a business through the issuance of shares.
- Hackers /ˈhæ.kərz/ (noun): Individuals who gain unauthorized access to computer systems or networks.
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