US: DNA testing pioneer 23andMe has filed for bankruptcy protection, marking a dramatic turn for the once high-flying genetic testing firm.
The company also announced that its co-founder and CEO, Anne Wojcicki, has resigned with immediate effect. The California-based company, once valued at $6 billion, will now seek a court-supervised sale while continuing operations.
Despite its financial turmoil, 23andMe assured customers that its data storage and security protocols remain unchanged. However, concerns over customer data have intensified. On Friday, the California Attorney General issued a consumer alert advising customers to delete their data, citing the company’s financial distress.
Founded in 2006, 23andMe revolutionized genetic testing with its saliva-based kits, earning endorsements from celebrities such as Oprah Winfrey and Snoop Dogg. The company went public in 2021 but has never turned a profit.
Its business model faced challenges as customers had little incentive to return after purchasing a DNA report. Attempts to introduce a subscription service and leverage genetic data for drug development failed to gain traction.
The company’s troubles deepened after a 2023 data breach compromised the personal information of nearly seven million customers.
While DNA records were reportedly not accessed, hackers obtained family trees, birth years, and geographic locations through old passwords. The breach led to a lawsuit settlement in September. In a further blow, the company slashed 40 percent of its workforce last November, laying off 200 employees.
Anne Wojcicki will remain on the board, while CFO Joe Selsavage takes over as interim CEO. Wojcicki had sought to take the company private but resisted third-party buyouts. Last summer, all board members except Wojcicki resigned, citing unsatisfactory buyout offers.
