23andMe, a prominent DNA testing company known for its at-home genetic analyses, has entered Chapter 11 bankruptcy protection amid ongoing financial challenges. Co-founder and CEO Anne Wojcicki confirmed her immediate resignation via a post on X, indicating her intention to pursue an independent bid for the company. In her absence, chief financial and accounting officer Joe Selsavage will step in as interim CEO.
Mark Jensen, chair of the Special Committee of the Board of Directors, expressed in a statement that following a comprehensive review of potential options, a court-supervised sale process was deemed the most effective approach to enhance the company’s value. He noted the expectation that this process would help address various operational and financial difficulties, alongside ongoing cost reductions and the management of legal and leasehold responsibilities.
The company gained recognition for its genetic testing kits, which analyze customers’ saliva to reveal ancestry information. Following a public listing in 2021 that briefly elevated its valuation to $6 billion, 23andMe’s market worth has plummeted to approximately $50 million, largely due to its inability to achieve profitability. Recently, the firm also faced a $30 million settlement in September concerning a lawsuit that alleged inadequate protection of customer data for nearly seven million users in a 2023 data breach, alongside plans to reduce its workforce by 40 percent announced in November.
23andMe stated its intention to maintain business operations throughout the bankruptcy proceedings, assuring customers that access to their data and subscriptions will remain unaffected.
In her statement, Wojcicki acknowledged both the successes and failures encountered during her tenure. She emphasized, “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.”
