54gene has laid off 30% of its staff, signifying 95 employees let go from its team.
The move is referenced to the reduction in COVID-19 testing which the company started when the pandemic kicked off in 2020.
In this regard, an investment of $500,000 was raised, targeted at improving Nigeria’s capacity to carry out tests for COVID-19.
Turning out to be one of Nigeria’s biggest COVID-19 testers, the startup had commendable scale during this period. However, the reduction in the impact of COVID-19 and reduced need for the test has led 54gene to let go of employees hired in relation to the operations.
Reports state that the startup had to make this adjustment so as to remain competitive in the market. Also, it plans to provide statutory support to affected employees, additional severance pay and health insurance coverage for a total of three months.
On a mission to ensure the inclusion of African genome in research, 54gene was founded by Abasi Ene-Obong in 2019.
The startup is backed by Y Combinator, Adjuvant Capital, Cathay AfricInvest Innovation Fund (CAIF) and other investors. A total of $45 million has been raised by the biotech company since inception. Its latest round was a $25 million Series B closed last September. A year before this, it raised $15 million in Series A and in 2019, a $4.5 million seed round.
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