It is not the hot industry the enterprise predicted.
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This story initially appeared on Engadget
If you’re skittish about DNA testing solutions, you happen to be not the only one particular — and it is straight affecting one particular of the heavyweights in the field. The 23andMe group is laying off about 100 workers, or 14 % of its total workforce, in light of declining sales. The job cuts will concentrate on units accountable for expanding and scaling the enterprise. In the months ahead, 23andMe expects to reduce back its perform on clinical research and concentrate additional on its home testing and therapeutic offerings.
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Corporation chief Anne Wojcicki did not have definitive explanations for the shrinking sales in a chat with CNBC, but did speculate that privacy was “major of thoughts” for clients and may possibly have been a issue. Cold situations like the Golden State Killer seem to have been solved making use of on the net DNA databases — there may possibly be a worry of sensitive genetic information falling into the incorrect hands. Wojcicki also suspected that worry of a US recession may possibly lead folks to reduce back on unnecessary costs, and a dwelling DNA test could simply be one particular of the initially points to go.
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The enterprise is not the only one particular facing difficulty. Veritas Genetics closed its US company in late 2019, whilst Illuminia warned that the whole industry was down final summer season following witnessing a drop in demand for its DNA sequencing machines. In that regard, 23andMe is acknowledging the reality that DNA testing is not as hot a industry as it was in preceding years.
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