23andMe Files for Bankruptcy Protection as CEO Resigns.
23andMe, the popular DNA testing company, has filed for bankruptcy protection, a move that marks a major turning point for the firm. In an announcement, the company revealed that its co-founder and CEO, Anne Wojcicki, has resigned with immediate effect. As part of the bankruptcy process, 23andMe will now look to sell the company under court supervision.
Despite the financial distress, 23andMe stated that its operations will continue during the sale process, and emphasized that there would be no changes to how the company stores, manages, or protects customer data. The announcement comes after a consumer alert was issued by California's Attorney General advising customers to delete their data from the site, citing the company's financial situation.
23andMe rose to prominence with its saliva-based test kits, which once garnered significant attention from customers and investors. At its peak, the company’s value was estimated at $6 billion (£4.6 billion), but it has faced increasing challenges in recent years. Founded in 2006, the company went public in 2021 but has struggled to turn a profit. In September 2023, 23andMe settled a lawsuit regarding a data breach that exposed the personal information of nearly seven million customers. Although hackers gained access to some personal details, including family trees, birth years, and geographic locations, no DNA records were compromised.
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The company also faced difficulties with its business model. Despite endorsements from celebrities such as Oprah Winfrey, Eva Longoria, and Snoop Dogg, 23andMe failed to retain customer interest after the initial DNA reports were completed. A subscription service aimed at increasing customer engagement did not succeed, and efforts to use its vast data for drug development faltered. Additionally, in the wake of financial struggles, the company laid off 200 employees—about 40% of its workforce—just two months after the data breach settlement.
As part of the leadership changes, Joe Selsavage, the company’s finance chief, will assume the role of interim CEO. Anne Wojcicki, while stepping down from her CEO position, will remain involved with the company as a board member. Although she previously attempted to take the company private, Wojcicki was not open to the idea of a third-party takeover.
This marks the end of an era for the DNA testing firm, which at one point had seen endorsements from some of the biggest names in entertainment. However, 23andMe’s legacy in the genetic testing space remains influential, and despite these setbacks, the company’s groundbreaking approach to personal genetics has had a lasting impact on the healthcare and wellness industries.
While 23andMe navigates these challenges, the company’s core mission of providing individuals with access to their genetic information continues to resonate with consumers. As the company moves through bankruptcy proceedings and attempts to reshape its future, it still holds the potential for transformation and innovation within the broader biotech and wellness sectors. Despite its struggles, 23andMe remains a pioneer in personal genetics, and its ongoing journey offers an opportunity for reinvention and growth.
