Genealogy giant Ancestry just joined 23andMe in cutting workers as the DNA testing fad ends
- Genealogy giant Ancestry is laying off about 6% of its 1,700-person workforce, citing a slowdown in the genetic testing market.
- Sales of genetics tests have slowed, with Wall Street signalling that the consumer genetics "fad" is over.
- The news comes just weeks after 23andMe also announced plans to lay off 100 employees, citing the same pressures.
- Visit Business Insider's homepage for more stories.
The DNA-testing fad is ending, and it's hitting one of the biggest players in the space hard.On Wednesday, Ancestry CEO Margo Georgiadis wrote in a blog post that the company is laying off 6% of its 1,700-person workforce, or roughly 100 employees. In the post, Georgiadis cited the slowdown in the consumer genetics market as the reason, noting that the market is at an "inflection point," and most early adopters have already taken one of the tests.
"Over the last 18 months, we have seen a slowdown in consumer demand across the entire DNA category," Georgiadis wrote in the post. "Future growth will require a continued focus on building consumer trust and innovative new offerings that deliver even greater value to people."CNBC reported on the Ancestry layoffs earlier on Wednesday.
been flags raised about ethics and privacy, along with a slew of tough questions about identity and family.
Still, for years, it seemed like interest in genetic testing was only increasing. But in 2019, the companies started to run into a slowdown.
The first warning was raised by Illumina, the company that makes all the tech that's used to read info about your genes. On an earnings call in July, the company noted "softness" in the market.Never miss out on healthcare news. Subscribe to Dispensed, our weekly newsletter on pharma, biotech, and healthcare.
And in December, Veritas Genetics, a company that provides whole-genome sequencing for $600, said it had suspended its US operations, citing issues raising additional funding.
The layoffs at Ancestry come just months after the company unveiled its Ancestry Health tests, its first foray into the health market.
Featured Digital Health Articles:
- Telehealth Industry: Benefits, Services & Examples
- Value-Based Care Model: Pay-for-Performance Healthcare
- Senior Care & Assisted Living Market Trends
- Smart Medical Devices: Wearable Tech in Healthcare
- AI in Healthcare
- Remote Patient Monitoring Industry: Devices & Market Trends
NOW WATCH: What if you survived the apocalypse?
- Compound Interest Waiver Scheme applies to everyone but provides limited relief — Here’s everything you need to know
- Best budget truly wireless earbuds in India
- India is the most attractive emerging market for clean energy investment, says Prime Minister Modi
- Tata Motors may report loss for yet another quarter led by weak JLR sales, commercial vehicles’ pain
- Supreme Court jumps in for Amazon and Flipkart after Karnataka High Court remains mum on investigation against their anti-competitive practices for over 200 days