23andMe, the genetic testing firm backed by Richard Branson's VG Acquisition Corp, has announced plans to lay off 200 employees in an effort to regain stability following a significant business slowdown over the past year.
The company, which is cutting 40 per cent of its workforce, aims to recover from financial and operational difficulties triggered by a data breach and falling stock value, which led to a 70 per cent drop in share price to 4.67p over the last year, as reported by .
In addition, the firm will halt development on its therapeutic branch, opting instead to concentrate on its primary customer genetic-testing services and partnerships.
The restructuring is expected to cost 23andMe around $12m (£9.4m) in severance pay, but could result in annual savings of up to $35m (£27m).
The company faced challenges in December of the previous year when hackers accessed the personal data of approximately seven million users, stealing sensitive patient information.
However, 23andMe maintains that the DNA data was not accessed.
Hackers exploited previously leaked email and password credentials from other sites to gain access to the company's accounts and data.
The º£½ÇÊÓƵ's Information Commissioner's Office stated that the nature of the firm "makes public trust in these services essential".
23andMe faced a significant hurdle when seven out of eight board members stepped down in September, expressing discontent following buyout proposals from CEO Anne Wojcicki.
Anne Wojcicki, the chief executive of 23andMe, commented: "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".
