DNA testing firm 23andMe has filed for bankruptcy protection and announced the resignation of its CEO and co-founder Anne Wojcicki on Sunday in a press release. While Wojcicki would continue as a board member, Chief Financial and Accounting Officer Joe Selsavage will take over as interim chief executive.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” said Mark Jensen, chair and member of the Special Committee of the Board of Directors.
“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”
23andMe also said that it would continue operating throughout the sale process and that there “are no changes to the way the company stores, manages, or protects customer data.”
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On Friday, California Attorney General Rob Bonta urged 23andMe users to ask the company to delete their data and destroy any samples of genetic material as it files for bankruptcy.
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” Bonta said in a statement. “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
Founded in 2006, 23andMe went public in 2021. While it never turned a profit, its saliva-based tests gained significant popularity among customers and investors, who managed to push the company’s value as high as $6 billion.
In September 2024, the firm settled a lawsuit alleging that it failed to protect the privacy of nearly seven million customers whose personal information was exposed in a 2023 data breach. In some cases, hackers gained access to family trees, birth years and geographic locations, by using customers’ old passwords. The data stolen did not include DNA records, according to the company. Two months after the settlement, 23andMe cut 200 employees, amounting to 40% of its workforce.