23andMe Files for Bankruptcy as CEO Resigns
Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection in the U.S. as it struggles with financial losses and declining demand for its services. Co-founder and CEO Anne Wojcicki has resigned with immediate effect following the announcement, stating that she intends to bid for the company as an independent buyer. The company plans to sell itself under court supervision while continuing operations. Interim CEO Joe Selsavage, previously the company’s finance chief, will oversee the transition.
Once valued at billions, 23andMe has faced growing concerns over its business model and data privacy. It has never reported a net profit and recently settled a lawsuit over a 2023 data breach that exposed information from nearly seven million customers. In November, the company laid off 40% of its workforce and halted its drug development efforts in an attempt to cut costs. California’s Attorney General has since issued a consumer alert, warning users about the company’s financial instability and advising them to delete their data.
Despite repeated attempts by Wojcicki to make the company private, 23andMe’s board rejected Wojcicki’s buyout offers, leading to mass resignations among independent directors last year. Her latest bid valued the company at just $11 million, a fraction of its former worth. The company has secured $35 million in financing to keep operations running, but concerns remain over what will happen to its massive database of genetic information.
