23andMe, a pioneer in the direct-to-consumer genetic testing space, has announced that it has filed for bankruptcy protection, and its co-founder and CEO, Anne Wojcicki, has resigned with immediate effect. The company aims to continue its operations during the sale process while under court supervision, with interim Chief Executive Joe Selsavage stepping into his role. In light of the bankruptcy, California's Attorney General advised customers to delete their data, highlighting growing consumer concerns about the firm’s financial distress.
The company, which once reached a valuation of $6 billion, has faced mounting challenges, including the failure to turn a profit since its public listing in 2021. Earlier this year, 23andMe settled a lawsuit regarding a significant data breach that compromised the information of approximately 6.9 million customers. According to the company, although hackers accessed personal details, none of the DNA data was stolen. The board's prior attempts to change its business model, including launching a subscription service, proved unsuccessful, resulting in the company laying off 40% of its workforce around two months before the bankruptcy filing.
Board chair Mark Jensen affirmed the company's commitment to safeguarding customer data and maintaining transparency throughout the sale process. However, this has not alleviated user anxieties surrounding the future of their sensitive genetic information, especially after similar concerns were raised when other DNA testing companies ceased operations unexpectedly. As experts emphasize the value and sensitivity of genetic data, both current and former customers are left uncertain about their data's fate in the hands of the struggling company, and what comes next in the evolving landscape of genetic testing services.
The company, which once reached a valuation of $6 billion, has faced mounting challenges, including the failure to turn a profit since its public listing in 2021. Earlier this year, 23andMe settled a lawsuit regarding a significant data breach that compromised the information of approximately 6.9 million customers. According to the company, although hackers accessed personal details, none of the DNA data was stolen. The board's prior attempts to change its business model, including launching a subscription service, proved unsuccessful, resulting in the company laying off 40% of its workforce around two months before the bankruptcy filing.
Board chair Mark Jensen affirmed the company's commitment to safeguarding customer data and maintaining transparency throughout the sale process. However, this has not alleviated user anxieties surrounding the future of their sensitive genetic information, especially after similar concerns were raised when other DNA testing companies ceased operations unexpectedly. As experts emphasize the value and sensitivity of genetic data, both current and former customers are left uncertain about their data's fate in the hands of the struggling company, and what comes next in the evolving landscape of genetic testing services.
