Ancestry is a great seller for the home-based DNA tests. It is made for the growth of health and genealogy. Now, the workforce of this largest seller is decreased by 6%, which means 100 workers lay down. This laydown of workers affects the employees across the board. It is made, instead of concentrating on a particular department and all levels of workers, as well as the employees, lay off by 6%. The action affected the offices of California and Utah.
A blog post is published on Wednesday, which is written by the CEO and President Margo Georgiadis. Ancestry shared this blog post after getting confirmation by the layoffs. The effects raised on the DNA test is the decrease in demand for these DNA test. Now, the entry made into the categories by the adapters.
Commitments are made with the health care sides, for which the company is stressed. The commitments are made for the long term period of its business, called by Ancestry Health. Effects of layouts on the group are happening, the spokesman of the company noticed about this.
The future growth of the company is based upon the trust of the customers, written by Georgiadis. Their main agenda is to increase the value of the company by offering new things to the customers. The decision made is not as easy as it looks like, said by the Spokesman. It is difficult enough to deal with such a situation
The day when the decision was to be taken, it was tough to deal with that day.
The news comes after several weeks of 23andMe; it is the second-largest company in space, which laid down by 14%, which is about 100 people. It happened because of the reduction in sales as expected by the company. The CEO Anne Wojcicki of 23andMe said that they do not know why people were purchasing their tests. But, they cited a number of potential explanation, which includes privacy.
Only the DNA testing companies are not facing the impact. The chief executive of Illumina, Francis deSouza, who is the maker of DNA sequencing machines, noted their earnings last year, which was also decreasing. The segments were down of the company. For the ancestry and health tests, DeSouza said that the company is taking the issue in concern for solving it.
One of the largest potential factors is possible privacy. People are very much concerned that their DNA will end up in the wrong hands, or they are being used for unexpected ways after 2018 when the arrest of the suspect raised the Old Golden State Killer. The distinct relative shared genetic information via a free online database. On that free online database company, anyone who got their DNA tested can upload it.
Ancestry is the veteran of the relatively new consumer DNA testing space. From 2009 to 2012, the trade has been made on Nasdaq.