The excitement in the consumer genetic testing market shows the signs of being slowed down, and it is continuing to slow.
In the previous two weeks, the layoffs have hit two of the largest consumer genetic testing services named 23andme and Ancestry. The latter one, today, in a blog post announced that they would slash their staff by 6%.
In the blog post, the Chief Executive of Ancestry named Margo Georgiadis wrote that the move from the Ancestry followed the job cuts at 23andMe in late January, which revealed that around 100 staffers had lost their jobs.
Illumina, the genetic testing company, has been warning of the softness in the direction to their consumer genetic testing market. In a second-quarter earnings call, the chief executive of the company named Francis deSouza said that previously they had based their DTC expectations on the customer forecasts, but the provided unexpected market softness. They were taking an even more careful view of the chance in the nearer term.
Consumers seem to wake up to the privacy concerns over the way how those genetic tests can be utilized. Earlier this year, the director of the digital safety and privacy for the advocacy organization, Matt Mitchell of the Tactical Tech, told Business Insider that you could cancel your credit card, but you couldn’t change the DNA.
Besides, the privacy laws in the United States also haven’t caught up with their reality of how DNA testing is used. Mark Rothstein, who is a law professor at Brandeis as well as the director of the University of Louisville’s Institute for Bioethics, told the Wired that in the United States, they had separately taken to protect the genetic information rather than utilizing general privacy laws. Mark Rothstein also said that the majority of the people looked like that had finished with a worse idea.