LEHI — Utah-born DNA testing giant Ancestry.com announced plans Wednesday to lay off over 100 employees, citing slowing consumer interest in DNA testing services.
Ancestry has offices in both Lehi and San Francisco, and a spokeswoman for the company said a total of 109 employees will be impacted by the decision, with both locations accounting for about half of the staff reductions.
The news comes just a few months after the company announced it was expanding its genetic testing assessments, a service it’s offered for years to help customers identify their ethnic backgrounds, into the personal health market.
Ancestry President and CEO Margo Georgiadis said the 6% workforces reduction comes as the company works to adjust to a slowing consumer market and a sector rife with competitors.
“Over the last 18 months, we have seen a slowdown in consumer demand across the entire DNA category,” Georgiadis said in a statement. “The DNA market is at an inflection point now that most early adopters have entered the category. Future growth will require a continued focus on building consumer trust and innovative new offerings that deliver even greater value to people.”
Last April, the company received a $2.4 million post-performance tax incentive package from the Governor’s Office of Economic Development. The day the award was announced, Howard Hochhauser, Ancestry’s chief financial officer and chief operating officer, said the state’s tax rebate package could play a role in bringing back some of the Ancestry jobs that had migrated to San Francisco over the last few years.
“Over the years a lot of the executive team has migrated from Utah to San Francisco,” Hochhauser said. “In fact, I’m the last one here in Utah. This will really help … bring jobs back here and continue our growth in the state.”
Georgiadis said Ancestry’s family history business remains strong and the company had plans in place to continue investing in the new health testing services.
“Today we made targeted changes to better position our business to these marketplace realities,” Georgiadis said. “These are difficult decisions and impact 6% of our workforce. We’ve done so in service to sharpening our focus and investment on our core Family History business and the long-term opportunity with AncestryHealth.”
Ancestry launched more than 30 years ago as a family history search service, later adding DNA testing to help customers identify their geographic ancestral roots. Last October, it announced its new, health-focused genetic testing service.