By comparing 4,344 protein sequences from fission yeast Schizosaccharomyces pombe with all available eukaryotic sequences, we identified those genes that are conserved in S. pombe and nonfungal eukaryotes but are missing or highly diverged in the baker's yeast Saccharomyces cerevisiae. Since the radiation from the common ancestor with S. pombe, S. cerevisiae appears to have lost about 300 genes, and about 300 more genes have diverged by far beyond expectation. The most notable feature of the set of genes lost in S. cerevisiae is the coelimination of functionally connected groups of proteins, such as the signalosome and the spliceosome components. We predict similar coelimination of the components of the posttranscriptional gene-silencing system that includes the recently identified RNA-dependent RNA polymerase. Because one of the functions of posttranscriptional silencing appears to be ''taming'' of retrotransposons, the loss of this system in yeast could have triggered massive retrotransposition, resulting in elimination of introns and subsequent loss of spliceosome components that become dispensable. As the genome database grows, systematic analysis of coordinated gene loss may become a general approach for predicting new components of functional systems or even defining previously unknown functional complexes.A major outcome of the recent advances in comparative genomics is the realization of the major role of horizontal gene transfer and lineage-specific gene loss in the evolution of prokaryotes (1-4). These phenomena appear to account largely for the remarkable diversity of the prokaryotic gene repertoires. The likelihood of horizontal gene transfer between eukaryotes, at least multicellular ones, is low because, for a gene to be laterally transferred, it must enter the germ line. In contrast, there is no such restriction for gene loss. The dramatic variation in the number of genes among eukaryotes, in some cases even between rather closely related species-yeast Saccharomyces cerevisiae, for example, has about 6,000 genes compared with at least 8,000-9,000 in multicellular ascomycetes such as Aspergillus (5)-suggests that, along with proliferation of gene families (6), lineage-specific gene loss could have been important in eukaryotic evolution.The two yeasts, S. cerevisiae and Schizosaccharomyces pombe, are probably the optimal current choice of genomes to compare with the aim of estimating the number of lost genes. The genome of S. cerevisiae, arguably the best-studied eukaryote in terms of gene functions (6), has been completed (7), and for S. pombe, up to 70% of the genome sequence is available. For estimating gene loss, it is critical to have assurance that (nearly) all genes in the analyzed genome have been identified; S. cerevisiae is the only eukaryotic genome for which such confidence exists, particularly because of the paucity of introns, which facilitates gene detection. The two yeast species are close enough so that direct counterparts among their genes [orthologs (8)] are readily identifiable b...