23andMe, the genetic-testing and ancestry-tracing company co-founded by Anne Wojcicki, recently found itself at the center of multiple controversies. Amidst significant challenges, including recent layoffs and data security incidents, Wojcicki spoke out about the company's need for restructuring to maintain its viability and trust among consumers.
Wojcicki, who has been at the helm of 23andMe, acknowledged the turmoil the company is facing, stating emphatically, "I believe it's absolutely necessary for us to restructure." She provided insight during her interview with CBS Mornings co-host Gayle King, emphasizing her long-term vision for the company, even as it has encountered obstacles.
The incidents prompting Wojcicki’s remarks include a concerning data security breach earlier this year where hackers accessed sensitive genetic data from millions of users. This incident hit the company's reputation hard, leaving customers anxious about the safety of their personal information. Adding to the troubles, the company's board members resigned en masse, indicating deep rifts over strategic direction. This came after 23andMe announced significant layoffs, cutting around 40% of its workforce.
These drastic changes come after the company’s stock plummeted by approximately 98% since its public offering, indicating severe financial distress. Once valued at $6 billion, 23andMe’s current market cap is only around $80 million. The most recent quarterly report also revealed net losses nearing $59.1 million.
Wojcicki defended her role during the turmoil, stating she was caught off guard by the board's decision to resign, saying, "I don’t have great insights as to what the strategic differences were." She indicated her intent to take the company private as part of her strategy moving forward. When it was suggested she might be open to third-party buyout offers, her response was clear: no. "I’m not open to considering those," she said.
An internal review seems to suggest mixed feelings from former employees about Wojcicki's management style. Some claim she exudes charm but can be controlling rather than receptive to feedback. This sentiment was echoed by ex-employees who characterized her approach as having closed off alternative perspectives. Wojcicki countered such notions by encouraging open dialogue, noting, "I love getting feedback...we're doing all kinds of things for the first time."
Continuing her belief in the company's mission, Wojcicki highlighted stories of satisfied customers who have benefited from their services. She pointed to emails from numerous users, one being Rebecca Jones, who appreciated how 23andMe assisted her with learning about her risk of Alzheimer's.
Despite battling setbacks, Wojcicki maintains optimism about the company's financial turnaround. Focused on boosting revenue through its subscription service, 23andMe plans to expand the value provided to customers. Premium memberships include health insights alongside ancestry kits, indicating where the company sees growth potential.
Touching upon the layoffs, which affected over 200 employees, Wojcicki stated, "The focus right now is 100% on making 23andMe sustainable." She declared research initiatives would no longer be undertaken at the company’s expense, steering resources toward ensuring consumer business viability.
Wojcicki, who expressed belief in the revitalization of the company, asserted confidently, "I believe we will be growing and thriving in 2025." She also declared ambitious plans for the future of 23andMe, saying, "Five years from now, it will transform health care." This vision includes solidifying its brand identity as not just about ancestry but significantly improving consumer health insights, potentially aiding many who wish to manage hereditary health risks more effectively.
Despite the tumult, Wojcicki's commitment to turn these challenges around for 23andMe remains steadfast. She acknowledges mistakes will be made but reassures her dedication to learning from them as the company moves forward.