23andMe CEO Anne Wojcicki knows the genetic-testing and ancestry-tracing company has been in “the eye of the storm” recently, but she said she’s confident that the company is still viable and believes it will be “growing and thriving” a year from now.
“I believe in the company. I believe in the long-term mission. But I believe it’s essential for us to restructure,” Wojcicki told “CBS Mornings” co-host Gayle King in an exclusive interview.
Wojcicki acknowledged recent headlines about the California-based company’s struggles, including a data security incident in late 2023, a full board resignation in September, and laying off 40% of the company’s workforce in November. In a public letter, the seven board members said it was “clear that we differ on the strategic direction for the Company going forward.”
The announcement came as a surprise to Wojcicki, saying that she doesn’t have “great insights into what the strategic differences were” and that “there was not an overt disagreement.” Wojcicki has recently said she intends to take the company private and isn’t open to considering third-party takeover proposals.
“I will make [mistakes], and I will learn from them”
Former 23andMe employees were critical of Wojcicki’s management style in an October interview with Fortune Magazine – with one calling her “outwardly charming, but stubborn and controlling behind the scenes.”
“I love getting feedback. Like, one of my favorite things…” Wojcicki said.
Wojcicki said she encourages everyone to voice their opinions and share suggestions.
“At the heart of what 23andMe does…we’re about consumer empowerment and research. Okay. So help me navigate because this has never been done before. So I love getting feedback for all those reasons because it has never been done before,” Wojcicki explained. “We’re doing all kinds of things for the first time. So we will make mistakes. 100% admit all of that. But…my commitment to the world has always been I will always learn from my mistakes. I will make them, and I will learn from them, and we will be better going forward.”
Wojcicki sent “CBS Mornings” emails she says the company received in support of 23andMe, including one from 70-year-old Rebecca Jones who thanked the company for helping her learn about her increased risk for Alzheimer’s. Wojcicki said stories like these show the company provides real value.
When asked by “CBS Mornings” if she was concerned about her data following the 2023 security incident at the company, Jones said, “I have to have some level of confidence in the integrity of 23andMe, like I trust my physician. I have to trust that they are going to safeguard it. Of course I’m concerned and am watching it and will see if there are any steps I should take. I downloaded my data and all of that.”
Wojcicki’s future plans for 23andMe
23andMe’s stock has dropped around 98% since 2021, when it went public. The company, which was once valued at $6 billion, now has a market cap of around $80 million. In its most recent quarter, the company reported a net loss of $59.1 million.
King asked, “How does a company survive when it’s lost 98% of its value though?”
“I think market cap and reality of a company are always two different realities,” Wojcicki said. “We absolutely are in a situation where we’re figuring out cash burn and we’re looking at all the ways that we’re gonna drive revenue growth.”
To help boost revenue, Wojcicki said the company is focusing on its subscription service, where members can get more insights into their health. With a premium membership, customers get health and ancestry kits, discover things like their historical matches, receive new research reports on health findings – such as new breast cancer variants – and more.
“People did 23andMe, and they loved it. And we see over 50% of our customers coming back on a quarterly basis, so they’re engaged,” said Wojcicki, adding that it shows “they want more.”
Wojcicki said the recent layoffs, which affected more than 200 employees, were also an attempt to help slash costs.
“The focus right now is 100% on making 23andMe sustainable. And I will not be taking on research initiatives at our own cost anymore. So we will be focusing on – you know, the consumer business, the subscription, and research partnerships. And I absolutely think, like, 23andMe will, you know, turn a point at some point of being profitable,” Wojcicki said.
Wojcicki said she’s confident that in 2025, the company will be “growing and thriving.” In five years, it “will transform health care,” she told King.
