23andMe, a leading genetic testing company, has filed for bankruptcy protection in a U.S. federal court, signaling a significant shift in its operations. The company announced its plans to sell itself while operating under court supervision. As part of the transition, co-founder and CEO Anne Wojcicki has resigned from her role, effective immediately. In her place, Finance Chief Joe Selsavage will step in as interim CEO, the company confirmed in an official statement. Despite stepping down from executive leadership, Wojcicki will remain on the company’s board of directors.
Company Commits to Continuity and Data Security Amid Financial Struggles
Despite its financial troubles, 23andMe assured customers that it would continue operating during the sale process. The company emphasized that its commitment to safeguarding customer data would remain unchanged. In a statement, 23andMe reaffirmed that the storage, management, and protection of personal data would stay intact, even as it navigates this challenging phase.
However, the financial instability has raised concerns. On Friday, California’s Attorney General issued a consumer alert urging users to consider deleting their personal information from the platform. The alert highlighted the uncertainty surrounding the company’s future and its ongoing financial difficulties.
From Rapid Growth to Financial Setbacks: A Troubling Decline
23andMe’s decline follows years of success and high market valuation. At its peak, the company was valued at $6 billion, with its saliva-based DNA testing kits rapidly gaining popularity among consumers. Investors were equally enthusiastic, driving the company to significant growth and recognition in the genetics industry.
However, in recent months, the company has faced a series of financial and reputational challenges. In September, 23andMe settled a lawsuit related to a data breach that exposed the personal information of seven million users. This incident severely impacted customer trust and the company’s reputation.
In the wake of the breach, 23andMe made the difficult decision to lay off 200 employees—approximately 40 percent of its workforce—in November. These layoffs followed the company’s attempt to restructure its operations to stem the losses.
23andMe’s Efforts to Secure a Buyer and Stabilize Operations
As 23andMe now seeks a potential buyer under court supervision, its future remains uncertain. The company’s executives have pledged to maintain transparency throughout the sale process and to continue offering services to customers. While the bankruptcy filing marks a new chapter for the company, its commitment to data security and customer service remains a priority.
The sale process will determine whether 23andMe can successfully stabilize its operations and regain its former position in the genetic testing market. As the company works through this challenging period, it is clear that its financial struggles have brought an abrupt end to an era of rapid growth and success.