23andMe Files for Bankruptcy: CEO Resigns as DNA Testing Giant Faces Uncertain Future
Staff Editor DNA Testing Firm 23andMe Files for Bankruptcy, CEO Steps Down
23andMe, the prominent DNA testing company, has filed for Chapter 11 bankruptcy protection and announced plans to sell itself amid ongoing financial difficulties. In a surprising move, co-founder and CEO Anne Wojcicki has resigned from her position to become an independent bidder in the sale process.
The company’s chief financial and accounting officer, Joe Selsavage, has been appointed as interim CEO. This decision comes after a strategic evaluation aimed at maximizing the business’s value.
The Chapter 11 filing is intended to facilitate a court-supervised sale process, addressing operational and financial challenges. The company plans to implement further cost reductions and resolve legal and leasehold liabilities during this process.
23andMe, known for its at-home gene testing kits that analyze ancestry through saliva samples, has faced significant challenges since going public in 2021. Initially valued at $6 billion, the company’s market value has plummeted to approximately $50 million, struggling to turn a profit and maintain financial stability.
Legal issues have also plagued the company, with a recent $30 million settlement over a 2023 data breach affecting seven million customers. In November, 23andMe announced a 40% reduction in its workforce as part of cost-cutting measures.
Despite these challenges, the company assures customers that operations will continue during bankruptcy proceedings, with access to data and subscriptions remaining unaffected.
Wojcicki, while expressing accountability for the current situation, maintains her belief in the company’s future. “While our business model has faced challenges as it has evolved, I continue to believe deeply in the power of genetics to positively impact health outcomes,” she stated.
As 23andMe navigates this pivotal moment, the DNA testing industry watches closely to see how this once-pioneering company will reshape its future in the competitive genomics market.
