Layoffs Result as Consumers Think Twice About DNA Testing

These have been rough days for the DNA-testing business — an industry that sprang up seemingly overnight with promises of helping customers track down long-lost relatives or ancestors, or even spot a hereditary disease before symptoms arise. Millions of people have submitted saliva samples to see what might turn up.

Looks like that’s changing.

A few weeks ago, 23andMe, the second-largest company in the space, laid off 14% of its staff — about 100 workers — after sales came in lower than expected.

Now comes word industry leader Ancestry is similarly giving about a hundred workers, or 6% of its workforce, the heave-ho.

“Over the last 18 months, we have seen a slowdown in consumer demand across the entire DNA category,” the company said in a blog post. “The DNA market is at an inflection point now that most early adopters have entered the category.”

Which is to say, pretty much everyone who wanted to give home DNA testing a try has done so, and the company is having a hard time winning over new customers.

“Future growth will require...