United States: Genetic testing company 23andMe has filed for bankruptcy protection and announced the immediate resignation of its co-founder and CEO, Anne Wojcicki. The company will now seek a sale under court supervision while continuing operations.
In a statement, 23andMe assured customers that there would be no changes to how it stores or protects their data. However, California’s Attorney General has advised customers to delete their data due to the company’s financial troubles.
Founded in 2006, 23andMe was once valued at $6 billion, gaining popularity for its at-home DNA testing kits. However, despite going public in 2021, the company has never turned a profit. Its struggles intensified following a 2023 data breach that exposed the personal details of nearly seven million users. Although DNA records were not compromised, hackers accessed family trees, birth years, and geographic locations using old customer passwords.
The company settled a lawsuit over the breach in September, and two months later, it cut 40 percent of its workforce, laying off 200 employees.
With Wojcicki stepping down, CFO Joe Selsavage will serve as interim CEO. Wojcicki, who remains on the board, previously attempted to take the company private but resisted third-party takeover offers.
Once endorsed by celebrities like Oprah Winfrey, Eva Longoria, and Snoop Dogg, 23andMe struggled to retain customers beyond their initial DNA reports. Efforts to pivot to a subscription model and drug development proved unsuccessful.
The company’s board also faced upheaval last year when all directors except Wojcicki resigned after failing to secure a satisfactory buyout deal.
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