23andMe Files for Bankruptcy as Co-Founder Resigns to Bid for the Company

Genetic testing giant 23andMe has officially filed for Chapter 11 bankruptcy protection in an effort to facilitate a potential sale. The move follows years of financial struggles, including declining valuation, legal issues, and substantial layoffs. In a surprising development, co-founder and CEO Anne Wojcicki announced her immediate resignation, revealing her plans to become an independent bidder for the company. In her absence, Chief Financial and Accounting Officer Joe Selsavage will take over as interim CEO.

According to Mark Jensen, Chair of the Board’s Special Committee, the decision to enter a court-supervised sale process was made after extensive consideration of strategic alternatives. This process is intended to help the company maximize its value while also addressing operational and financial hurdles, including legal liabilities and cost-cutting measures.

23andMe rose to prominence with its at-home DNA testing kits, offering customers insights into their ancestry through a simple saliva test. However, after peaking at a $6 billion valuation when it went public in 2021, the company has since seen its worth plummet to just $50 million. A major data breach in 2023, which exposed sensitive information of nearly seven million users, resulted in a $30 million settlement. Additionally, in November, the company announced it would be laying off 40% of its workforce to curb mounting losses.

Despite its bankruptcy filing, 23andMe assures users that its services will remain accessible and that subscriptions will not be affected. Wojcicki, reflecting on the company’s ups and downs, acknowledged the challenges faced but expressed unwavering belief in its future. With a sale process now underway, the fate of 23andMe remains uncertain, but its impact on the DNA testing industry is undeniable.