23andMe Files for Bankruptcy Protection Amid Financial Struggles
The DNA testing company, 23andMe, has announced its bankruptcy filing and CEO resignation amid financial turbulence.
In a surprising turn of events, popular DNA testing service 23andMe has sought bankruptcy protection and witnessed the immediate resignation of co-founder and CEO Anne Wojcicki. The company aims to continue operations and pursue a sale under court supervision while assuring customers that there will be no alterations in the handling of their data. This announcement followed a consumer alert issued by the California Attorney General, recommending that users consider deleting their data due to the company's financial woes. 23andMe, which gained fame for its saliva-based testing kits, reached a valuation of $6 billion at its peak but has faced substantial challenges, including a 2023 data breach that compromised the personal details of about seven million customers. The breach did not include DNA information, but it severely impacted customer trust. After settling lawsuits connected to this issue, 23andMe cut 200 jobs—40% of its workforce—and is now under interim management from financial chief Joe Selsavage while Wojcicki remains on the board. The company has struggled to maintain a viable business model since its public listing in 2021, leading to the recent filing and uncertainty regarding customer data protection in future transactions.
The DNA testing company, 23andMe, has announced its bankruptcy filing and CEO resignation amid financial turbulence.
In a surprising turn of events, popular DNA testing service 23andMe has sought bankruptcy protection and witnessed the immediate resignation of co-founder and CEO Anne Wojcicki. The company aims to continue operations and pursue a sale under court supervision while assuring customers that there will be no alterations in the handling of their data. This announcement followed a consumer alert issued by the California Attorney General, recommending that users consider deleting their data due to the company's financial woes. 23andMe, which gained fame for its saliva-based testing kits, reached a valuation of $6 billion at its peak but has faced substantial challenges, including a 2023 data breach that compromised the personal details of about seven million customers. The breach did not include DNA information, but it severely impacted customer trust. After settling lawsuits connected to this issue, 23andMe cut 200 jobs—40% of its workforce—and is now under interim management from financial chief Joe Selsavage while Wojcicki remains on the board. The company has struggled to maintain a viable business model since its public listing in 2021, leading to the recent filing and uncertainty regarding customer data protection in future transactions.
