Silke Mayr Popular genetic testing company 23andMe has filed for bankruptcy protection in a United States court, signaling a major shift for the once-prominent firm. The company confirmed plans to sell itself under court supervision while maintaining daily operations. Following the announcement, Anne Wojcicki, the co-founder and long-time CEO, resigned from her position effective immediately.
Company Assures Users of Continued Service and Data Safety
In an official statement, 23andMe reassured customers that the company will continue to operate as usual throughout its legal proceedings. Despite the financial crisis, the company emphasized that its methods for storing, managing, and protecting customer data will remain unchanged. However, California’s Attorney General issued a consumer alert, urging users to delete their personal data due to concerns over the company’s financial situation.
From Industry Leader to Financial Crisis
Once a leader in the genetic testing industry, 23andMe had reached a valuation of $6 billion at its peak, earning the trust of millions of users and investors. However, the company has faced significant challenges in recent months, with declining revenues and a loss of consumer confidence. These struggles have only deepened after the company’s data breach in 2023, where personal information from seven million users was exposed. In response, 23andMe reached a settlement over the breach, but the damage to its reputation was already done.
In an effort to reduce costs, 23andMe also laid off 200 employees, cutting 40 percent of its workforce. This downsizing was seen as a last-ditch effort to ensure the company’s survival in the face of mounting financial pressures.
Leadership Change Amid Uncertainty
With Anne Wojcicki stepping down as CEO, the company has appointed Joe Selsavage, the finance chief, as interim CEO. Despite her resignation, Wojcicki will remain on 23andMe’s board of directors, continuing to guide the company through this turbulent period. The leadership change marks a new chapter in the company’s history, with questions remaining about its future.
The Road Ahead for 23andMe
As 23andMe navigates the bankruptcy proceedings, the company faces a crucial crossroads. The sale of the company under court supervision may help secure its future, but with significant challenges ahead, it remains unclear whether the company will regain its former standing in the industry.
The situation is still developing, and consumers and investors alike are watching closely as 23andMe works to find a path forward amid growing uncertainty.