Personal genomics and biotechnology company 23andMe (NASDAQ:ME) is laying off roughly 9% of its workforce as part of its restructuring efforts and cost-saving initiatives. CEO and co-founder Anne Wojcicki approved the layoff of the 75 employees, which will be completed largely in the ongoing quarter ending June 30, 2023. Following the news, shares of the company lost nearly 4% on June 9 and fell another 3.6% in extended trading.
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23andMe said that it will bear cash expenses related to severance and benefit continuation charges of up to $3.5 million, and another $0.5 million in equity compensation non-cash charges in the ongoing first quarter of Fiscal 2024. After the workforce reduction, the company hopes to save approximately $12.8 million in annualized payroll and benefit expenses.
The genome-based healthcare company is scheduled to report its Q1FY24 results on August 9, 2023. The Street expects ME to post a quarterly loss of $0.15 per share, while sales estimates are pegged at $56.90 million.
Will 23andMe Stock Go Up?
Last week, analyst Gaurav Goparaju of Berenberg Bank reiterated a Buy rating on ME stock and set a price target of $6, implying the stock has a massive 210.9% upside potential from current levels.
Overall, the stock commands a Strong Buy consensus rating based on three Buys and one Hold rating. The average 23andMe price target of $4.88 implies 152.8% upside potential from current levels. Meanwhile, ME stock has lost 8.1% so far this year.
