**The troubled genetic testing company, once valued at $6bn, faces significant operational and reputational challenges while reassuring customers about data safety.**
**23andMe Files for Bankruptcy Protection Amid Financial Struggles**
**23andMe Files for Bankruptcy Protection Amid Financial Struggles**
**Co-founder and CEO Anne Wojcicki resigns as the DNA testing company seeks court-supervised sale.**
In a surprising turn of events, 23andMe, the well-known DNA testing firm, has filed for bankruptcy protection and announced the immediate resignation of its co-founder and CEO, Anne Wojcicki. The company, which will now seek to auction its assets under court supervision, aims to maintain its operations during this transitional period while ensuring that there will be no alterations to how customer data is stored or secured.
The shift follows a challenging financial landscape for 23andMe, which was once celebrated with a valuation that soared to $6 billion. Founded in 2006 and going public in 2021, the company has struggled financially, never achieving profitability. A recent data breach in 2023, which led to a settlement on allegations of inadequate customer privacy protection, further complicated its standing. Approximately seven million customers’ details were exposed, though DNA records remained secure.
With the recent job cuts impacting nearly 40% of its workforce, a new interim CEO has been appointed; Joe Selsavage, previously the finance chief, will take on the role. Wojcicki remains involved as a board member and had previously attempted to privatize the firm, rejecting external acquisition offers.
As concerns over DNA data security grow, with the California Attorney General urging customers to consider deleting their data, 23andMe's board chair, Mark Jensen, reassured stakeholders of their commitment to privacy and transparency regarding customer data management in future transactions. However, uncertainty prevails, reminiscent of similar situations faced by customers of other genetic testing firms that collapsed without clear direction for data handling.
Amidst these developments, experts warn of the sensitivity associated with genetic data, which extends beyond individual privacy concerns to include familial connections. With the emphasis on the value and implications of DNA data, customers of 23andMe may find themselves at a crossroads—facing possibilities for both resolution and uncertainty moving forward.
The shift follows a challenging financial landscape for 23andMe, which was once celebrated with a valuation that soared to $6 billion. Founded in 2006 and going public in 2021, the company has struggled financially, never achieving profitability. A recent data breach in 2023, which led to a settlement on allegations of inadequate customer privacy protection, further complicated its standing. Approximately seven million customers’ details were exposed, though DNA records remained secure.
With the recent job cuts impacting nearly 40% of its workforce, a new interim CEO has been appointed; Joe Selsavage, previously the finance chief, will take on the role. Wojcicki remains involved as a board member and had previously attempted to privatize the firm, rejecting external acquisition offers.
As concerns over DNA data security grow, with the California Attorney General urging customers to consider deleting their data, 23andMe's board chair, Mark Jensen, reassured stakeholders of their commitment to privacy and transparency regarding customer data management in future transactions. However, uncertainty prevails, reminiscent of similar situations faced by customers of other genetic testing firms that collapsed without clear direction for data handling.
Amidst these developments, experts warn of the sensitivity associated with genetic data, which extends beyond individual privacy concerns to include familial connections. With the emphasis on the value and implications of DNA data, customers of 23andMe may find themselves at a crossroads—facing possibilities for both resolution and uncertainty moving forward.
