23andMe files for bankruptcy as CEO steps down

DNA testing firm 23andMe has filed for Chapter 11 bankruptcy protection to help the company sell itself after years of financial difficulties. Anne Wojcicki, 23andMe’s co-founder and CEO, announced on X that she has resigned with immediate effect to become an independent bidder for the company, with chief financial and accounting officer Joe Selsavage stepping in as interim CEO.

“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” Mark Jensen, chair and member of the Special Committee of the Board of Directors, said in a statement. “We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities.”

23andMe is best known for its at-home gene testing kits that use a customer’s saliva to dig into their ancestry. The company was briefly valued at $6 billion after going public in 2021, but has since plummeted to $50 million after failing to turn a profit. It settled a lawsuit for $30 million in September that alleged the firm had failed to protect the data of almost seven million customers during a data breach in 2023, and announced in November that it was cutting 40 percent of its workforce.

23andMe says that it intends to “continue operating its business” throughout the bankruptcy proceedings and that customer’s access to data and subscriptions won’t be affected.

“We have had many successes but I equally take accountability for the challenges we have today,” Wojcicki said. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”

Source: https://www.theverge.com/news/634497/23andme-chapter-11-bankruptcy-gene-testing

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