23andMe, a leading name in the direct-to-consumer DNA testing space, has filed for bankruptcy protection and is seeking an acquisition under court supervision.
23andMe Enters Bankruptcy Protection Amid Leadership Changes
23andMe Enters Bankruptcy Protection Amid Leadership Changes
Prominent DNA testing company faces financial turmoil as co-founder resigns
In a startling development from San Francisco, 23andMe, the well-known DNA testing firm, has announced its filing for bankruptcy protection, marking a significant pivot in its operations. The company confirmed that co-founder and CEO Anne Wojcicki has stepped down immediately. The transition will see the company attempting to attract buyers while operating under court oversight.
The firm's public statement reassured clients that customer data security measures would remain intact during this transitional phase, despite the current financial challenges. California's Attorney General promptly issued a consumer alert, advising users to consider deleting their data from the platform, citing concerns over the company’s financial stability.
Once a sparkling success story with a peak valuation of approximately $6 billion, 23andMe has encountered growing difficulties. The company faced scrutiny after settling a lawsuit related to a data breach that compromised the privacy of nearly seven million users earlier this year. Additionally, 23andMe reduced its workforce by around 40% in a bid to streamline operations.
With Joe Selsavage, the finance chief, stepping into the role of interim chief executive, Wojcicki will still maintain her position on the board. The future trajectory of 23andMe remains uncertain, as it navigates this tumultuous period in search of stability and potential ownership change.
