African genomics firm 54gene has reduced its workforce by 95 employees, representing roughly 30% of its staff, according to company sources. This decision reflects the challenges the startup has faced after shifting its focus from genomics to pandemic-related services during COVID-19.Founded in 2019 by Dr. Abasi Ene-Obong, 54gene aims to address the underrepresentation of African genetic data in global pharmaceutical research, where less than 3% of genetic material originates from Africa.
Despite its ambitious mission and notable investments—raising $45 million from global backers like Adjuvant Capital, Cathay AfricInvest Innovation Fund, and others—the company has had to pivot its operations in response to changing market conditions.
In 2020, 54gene leveraged its lab capabilities to support COVID-19 testing across Nigeria, quickly becoming one of the largest providers in the region. However, as the demand for COVID-19 testing plummeted, the company’s pandemic-related business lines became redundant. This downturn impacted multiple areas of the organization, including lab operations, sales, data entry, and sample collection. Contract workers and staff in operational and technical roles were among those affected by the downsizing.
A company representative noted that these changes were necessary to remain competitive and adapt to market conditions. “Like many others navigating this economic environment, we’ve had to make adjustments to our headcount and financials,” the spokesperson explained. The layoffs took effect on August 18, with affected employees receiving severance packages, statutory support, and extended health insurance coverage for three months.
54gene’s situation mirrors broader trends in the tech industry, where rising interest rates and investor caution have forced many startups to tighten their operations. Over the past two years, African tech companies like Wave, Swvl, Sendy, and MarketForce have also downsized despite securing substantial funding.For 54gene, the transition marks a turning point as it seeks to recalibrate its focus on its core mission of advancing genomics research in Africa while navigating the challenges of a shifting economic landscape.
