23andMe Files for Bankruptcy Protection Amid Financial Troubles

In a significant development, 23andMe has entered bankruptcy protection as it grapples with ongoing financial difficulties, leading to the resignation of its CEO, Anne Wojcicki.

23andMe, a well-known player in the DNA testing industry, has officially filed for bankruptcy protection, an announcement that accompanies the immediate resignation of co-founder and CEO Anne Wojcicki. The company is now poised to seek a buyer with the oversight of a court, stating in a recent press release that it intends to maintain its operations throughout the selling process while assuring clients that there will be no alterations to the management or protection of their data.

In light of the company's financial troubles, the Attorney General from California, where 23andMe is headquartered, has issued a consumer alert urging users to consider deleting their personal information from the platform. Once valued at around $6 billion, 23andMe's DNA saliva testing kits were once a hit with customers and investors alike. However, the firm has faced numerous challenges lately, including a lawsuit settlement for a data breach that affected the private details of nearly seven million customers in 2023.

Additionally, the company downsized its workforce by reducing approximately 200 staff members, which accounts for 40% of its employees. Joe Selsavage, the company’s chief financial officer, has stepped in as interim CEO while Wojcicki will remain with the company as a board member.