23andMe Files for Bankruptcy Protection Amid Leadership Shakeup

In a significant development within the tech industry, popular DNA testing service 23andMe has filed for bankruptcy protection after facing ongoing financial challenges. The company's co-founder and CEO, Anne Wojcicki, has stepped down immediately, paving the way for interim leadership under finance chief Joe Selsavage. The company is now aiming to sell itself under court supervision, despite promising to maintain its operational status and safeguarding customer data throughout the sale process.

This turmoil follows years of struggles since its public debut in 2021. Once valued at $6 billion, 23andMe has yet to achieve profitability and faced scrutiny after a data breach exposed personal information of approximately seven million customers. The incident led to a settlement, but trust issues linger, prompting California's Attorney General to advise users to erase their data from the platform.

Despite high-profile endorsements and initial popularity, the company’s attempts to innovate -- including subscription services and drug development initiatives -- have been largely unsuccessful. Concerns over the handling and potential future of genetic data remain prominent, especially in the UK where such information holds special protections. In light of these recent challenges, 23andMe’s board chair has pledged commitment to transparency in data management, but questions persist regarding customer trust and the fate of sensitive information, raising red flags for consumers.