Prognosis
Cutbacks by Ancestry, 23andMe Signal a Shakeout for DNA Industry
Privacy fears hinder a once-hot business, dialing up pressure to deliver on its health-care promises
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Consumer DNA-testing firms are closing up shop and cutting jobs, as a lull in sales forces the industry to move beyond the genealogy tests that turned a handful of well-funded companies into household names.
At least three companies have closed down or suspended their operations over the past year, while the two DNA-testing bellwethers, Ancestry.com LLC and 23andMe Inc., each cut approximately 100 jobs in recent weeks. Others have pulled tests from the market thanks to slow sales.