23andMe Files for Bankruptcy as CEO Anne Wojcicki Resigns

Genetic testing giant 23andMe has filed for Chapter 11 bankruptcy protection and announced the resignation of its co-founder and CEO, Anne Wojcicki. The company plans to sell 'substantially all of its assets' through a court-supervised reorganization process aimed at stabilizing operations and cutting costs.

Wojcicki, who has led the company since its inception in 2006, stepped down as CEO but will remain on the board and intends to independently bid for the company as part of the bankruptcy sale. Her resignation follows a turbulent period marked by strategic uncertainty, major layoffs, and failed attempts to take the company private.

Since going public in 2021, 23andMe has struggled with profitability and faced growing concerns over data privacy. A 2023 data breach exposed genetic and ancestral data of nearly 7 million users, resulting in a $30 million class-action settlement. The company now seeks to use the bankruptcy process to resolve legal liabilities related to the breach.

23andMe, once a pioneer in direct-to-consumer DNA testing, saw its stock value plummet to under $1 per share following the bankruptcy announcement. The company reported over $214 million in debt and $277 million in assets at the end of 2024. It has secured $35 million in financing from JMB Capital Partners to maintain operations during restructuring.

Chairman Mark Jensen emphasized that customer data remains secure and that privacy will be a priority in any future sale. Nonetheless, uncertainty over future ownership has raised questions about long-term data protection. The company is also seeking to cut real estate expenses by rejecting lease contracts in California.