23andMe, once celebrated for its consumer DNA testing kits and high-profile endorsements, has filed for bankruptcy protection, marking another setback for the company. In an official press release, 23andMe announced that its co-founder and CEO Anne Wojcicki has stepped down with immediate effect, and that the company will now seek a sale under court supervision.
Despite its financial difficulties, 23andMe reassured customers that there will be no changes to the way their personal and genetic data is stored or protected. This commitment comes even as the firm faces potential fines from the UK’s Information Commissioner’s Office, which recently issued a provisional notice regarding a 2023 data breach that exposed sensitive customer information such as family trees and birth years.
The bankruptcy filing follows a period of intense financial struggle for 23andMe. After going public in 2021 at a valuation as high as $6bn, the company has been unable to turn a profit and has seen its business model challenged by failed initiatives including a subscription service and an ambitious attempt to leverage its vast genetic database for drug development. The situation worsened further when most of its directors resigned last summer over a disputed buyout offer, leaving the company in a precarious position.
With a court-appointed trustee now overseeing the sale of its assets and the settlement of outstanding debts, 23andMe’s interim chief executive, finance chief Joe Selsavage, has taken charge of day-to-day operations. Board chair Mark Jensen emphasized that safeguarding customer data will remain a top priority in any future transaction, addressing concerns about the fate of sensitive personal information under UK data protection laws.
