23andMe Halts Next-Generation Sequencing Operations, Lays Off Key Lab Staff

According to a report by the prominent international community platform BuzzFeed, 23andMe has announced that it will no longer conduct next-generation DNA sequencing and has shut down its project laboratory. Approximately six employees were laid off from the laboratory in Salt Lake City, Utah. However, data verified on LinkedIn indicates that at least five lab technicians were dismissed, including Dr. Jill Hagenkord, the Chief Medical Officer, who had been leading the project since 2014.

23andMe will continue to sell its core product, a $199 DNA testing kit that provides insights into health status and ancestral heritage through genetic analysis. In an interview with TechCrunch in September, company founder Anne Wojcicki stated that the company would intensify efforts to collect more genetic information from diverse ethnic populations worldwide to ensure the diversity of its genetic data.

However, next-generation sequencing (NGS) technology will not be the company’s current focus.

Next-generation sequencing integrates multiple technologies, enabling sequencing through various approaches to provide more precise and detailed information. This new technology allows researchers to better detect potential diseases, while its cost has dropped significantly in recent years. The emergence of companies such as Helix, Color Genomics, and Genos has enabled individuals to gain a clearer understanding of their DNA.

In 2012, 23andMe began focusing on genetic technology and launched a pilot study on genome sequencing. The study was successful, and the company stated that it would “strive to make gene sequencing a technology accessible to everyone.”

To date, 23andMe has not issued an official response regarding why it halted its next-generation sequencing initiatives. However, at the WSJ.D Live Global Technology Conference held on Wednesday in Laguna Beach, California, Anne Wojcicki stated that although the company was developing this technology to help customers gain deeper insights into their DNA, it had decided to focus on its core business of direct-to-consumer DNA testing kits. “Genetics is complex, and we should remain directly consumer-facing.”

23andMe CEO Anne Wojcicki at The Wall Street Journal's Global Technology Conference

Three years ago, 23andMe was reprimanded by the FDA for releasing health information without physician authorization. For over a year, the FDA has been collaborating with Silicon Valley startups to collect certain health data, such as genetic markers associated with cystic fibrosis risk.

As for the speculation about funding issues from outside, founder Anne Wojcicki told BuzzFeed that it has nothing to do with slowing sequencing demand, funding or regulatory problems. She said: "Our funds are abundant, but the current situation is somewhat complicated."

She told BuzzFeed, “We spent a lot of time on sequencing, but I believe we should gain a deeper understanding of genetic complexity. Many people still lack a basic understanding of genetic information, and a major priority in the coming years will be to help individuals understand their own genetic foundations, so we decided to focus on our core business.”