23andMe experiences sales decline following workforce reduction announcement.

• On Tuesday, 23andMe announced that their second-quarter revenue decreased from $50 million to $44.1 million compared to the previous year.
• The genetic testing company announced on Monday that it will be laying off approximately 200 employees, which accounts for 40% of its workforce, and will be discontinuing its therapeutics programs.
• The company's stock price has decreased by 75% in 2023, following a significant loss of more than half its value.

On Tuesday, it was reported that the company's revenue had declined in its most recent quarter, one day after the company announced it would cut 40% of its workforce and close its therapeutics business as part of a business restructuring plan.

23andMe's net loss decreased to $59.1 million, or $2.32 per share, from $75.27 million, or $3.17 per share, in the fiscal second quarter, while the genetics company reported $44.1 million in revenue, down from $50 million in the same period last year.

The genetic testing provider announced on Monday that it will eliminate over 200 jobs, discontinue all of its therapeutic programs, and wind down ongoing clinical trials "as quickly as practical." The company is evaluating strategic options such as asset sales and licensing agreements to "maximize the value" of its therapeutic programs, according to the release.

"As we restructure 23andMe and prioritize the long-term success of our core consumer business and research partnerships, 23andMe CEO Anne Wojcicki stated in a Monday release. "I want to express my gratitude to our team for their relentless efforts in achieving our mission. We are steadfast in our commitment to supporting the employees affected by this transformation.""

On Tuesday, the company announced its intention to explore the possibility of obtaining more funding.

On Tuesday, 23andMe's shares experienced a slight decline. This year, they have fallen 75%, with more than half of their value lost in 2023, bringing the company's market cap close to $100 million.

In 2006, Wojcicki co-founded 23andMe and has been working to keep the company afloat after it faced the risk of being delisted from the Nasdaq. In October, shares were hovering below $1 until 23andMe announced a 1-for-20 reverse stock split.

The seven independent directors of the company resigned abruptly in September, stating in a letter that they disagreed with Wojcicki's vision for the company's strategic direction. Three new independent directors were appointed to the board in late October.

During 23andMe's earnings call on Tuesday, Wojcicki stated that we have met our responsibilities as a public company and regained compliance with NASDAQ listing standards by restructuring our board and performing a reverse stock split.

Wojcicki has consistently expressed her desire to take 23andMe private, though she did not discuss her plans on Tuesday. In a September filing with the SEC, she stated that she would not entertain third-party takeover proposals and believed the "best course of action" is for her to take the company private.

23andMe declined to comment.

WATCH: The rise and fall of 23andMe