NEW YORK – 23 and me is laying off 40 percent of its workforce, or more than 200 employees, and spinning off its therapeutics division as the struggling genetic testing company tries to cut costs.

The latest restructuring efforts were announced Monday by 23andMe. The company said it plans to end ongoing clinical trials “as quickly as possible” — and is currently evaluating “strategic alternatives” for its assets its drug development and research programs, which include studies on potential cancer treatments.

In a prepared statement, 23andMe CEO and co-founder Anne Wojcicki said the company is “taking these difficult but necessary actions” as it focuses on the “long-term success of our core consumer businesses and partnerships research”.

The restructuring comes at a time of turmoil at California-based 23andMe, which recently included a data breachseveral rounds of previous layoffs and accumulated losses that have plunged the company’s stock in recent years.

In September, all of 23andMe’s independent directors resigned from his board — in a rare move that followed lengthy negotiations with Wojcicki, who tried to take the company private. The seven executives who resigned said they had yet to receive a proper transaction proposal from the chief executive and cited a “clear” difference of opinion over the future of 23andMe.

At the time, Wojcicki said she was “surprised and disappointed” by the layoffs, but argued that taking 23andMe private and “out of the short-term pressures of the public markets” would be best for the company long-term.

After more than a month of Wojcicki leaving as its sole board member, 23andMe announced that it had named three new independent directors in late October.

23andMe went public in 2021 and has struggled to find a profitable business model since then, particularly with most saliva-based buyers. test kits only having to buy once. The company reported a net loss of $667 million for its latest fiscal year, more than double the $312 million loss for the previous year.

23andMe posted another quarterly earnings miss on Tuesday, albeit with fewer hits than in previous quarters. The company reported a net loss of $59.1 million for the second quarter of fiscal 2025, compared with a loss of $75.3 million for the same period a year earlier.

However, revenue totaled $44.1 million for the second quarter — down from $50 million a year earlier. The company cited lower sales of test kits and telehealth orders, as well as a decline in research revenue, but said that was partially offset by an increase in membership services.

23andMe anticipates the job cuts and other restructuring efforts announced Monday to reduce operating expenses and save the company more than $35 million annually. 23andMe also expects to incur costs of up to $12 million, primarily related to one-time severance and other termination-related expenses.

23andMe ended the quarter with cash and cash equivalents of $127 million, compared to $216 million on March 31, 2024.

Last month, 23andMe completed a 1-for-20 reverse stock split. Shares were down nearly 4% by midday Tuesday at about $4.43.