In a significant development, the well-known DNA testing company 23andMe has filed for bankruptcy protection, leading to the immediate resignation of its co-founder and CEO, Anne Wojcicki.
**23andMe Files for Bankruptcy Protection Amidst Financial Troubles**
**23andMe Files for Bankruptcy Protection Amidst Financial Troubles**
DNA testing pioneer seeks court supervision for sale while addressing customer concerns about data security.
The popular DNA testing firm 23andMe, known for its saliva-based test kits, has officially filed for bankruptcy protection, marking a significant decline for a company that once boasted a valuation of $6 billion (£4.6 billion). Following this announcement, a consumer alert was issued by the Attorney General in California, cautioning users to delete their data from the platform as the company grapples with reported financial distress. Despite these challenges, 23andMe assured customers that their data management practices would remain unchanged during the sale process.
Wojcicki’s resignation accompanies recent operational struggles, which included a major lawsuit settlement for failing to protect customer privacy after a 2023 data breach exposed nearly seven million users' personal information. In response to ongoing financial pressure, the company underwent significant downsizing, eliminating 40% of its workforce with the laying off of 200 employees just two months prior to the bankruptcy filing. Financial chief Joe Selsavage has been appointed as the interim CEO, with Wojcicki retaining her position on the board. The company’s move to sell itself under court supervision reflects an urgent need to stabilize its operations amidst these escalating challenges.
Wojcicki’s resignation accompanies recent operational struggles, which included a major lawsuit settlement for failing to protect customer privacy after a 2023 data breach exposed nearly seven million users' personal information. In response to ongoing financial pressure, the company underwent significant downsizing, eliminating 40% of its workforce with the laying off of 200 employees just two months prior to the bankruptcy filing. Financial chief Joe Selsavage has been appointed as the interim CEO, with Wojcicki retaining her position on the board. The company’s move to sell itself under court supervision reflects an urgent need to stabilize its operations amidst these escalating challenges.
