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The company said it expected to incur one-off costs of $12m (£9.3m), including severance pay, for the plan that will result in savings of $35m.
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships,” Ms Wojcicki said.
The company also said it is considering what to do with the therapies it had in development, including licensing or selling them.
23andMe is a giant of the growing ancestor-tracing industry. It offers genetic testing from DNA, with ancestry breakdown and personalised health insights.
Its customers include famous names, from rapper Snoop Dogg to multi-billionaire investor Warren Buffett.
In December last year, 23andMe confirmed that hackers had accessed details of about 6.9 million of its users.
In some cases this included family trees, birth years and geographic locations. But the stolen data did not include DNA records, it said.
The hackers logged into 23andMe accounts by using email and password details previously exposed by other breaches.
They downloaded not only the data from those accounts but the private information of all other users they had links to across the family trees on the website.
In June, data watchdogs in the UK and Canada announced investigations into the breach.
At the time, a statement from the UK’s Information Commissioner’s Office said “23andMe is a custodian of highly sensitive personal information, including genetic information which does not change over time.”
“This makes public trust in these services essential,” it added.
In another blow to the company, seven of 23andMe’s eight-strong board resigned in September.
The firm’s independent directors said they had stepped down after not receiving a satisfactory buyout offer from Ms Wojcicki.
