23andME files for bankruptcy, CEO steps down
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The news: Genetic testing firm 23andMe has filed for Chapter 11 bankruptcy protection and announced that co-founder and CEO Anne Wojcicki will step down.
The numbers: The USD50 million ($79.4 million) company cut around 40% of its workforce (around 200 employees) as part of a restructuring in 2024. Despite briefly reaching a valuation of USD6 billion after its listing in 2021, the company has never turned a profit.
The context: A statement released by the company said it will pursue the Chapter 11 proceedings to facilitate a sale process to maximise the value of its business, having explored strategic alternatives.
Wojcicki wrote on X that she was disappointed that an offer she had made to take the company private had been rejected, and that her decision to step down would allow her to “be in the best position to pursue the company as an independent bidder.”
In September 2024, seven of the company’s independent directors resigned, citing frustration with the CEO’s strategic direction and attempts to take the company private.
Late last week, the California Attorney General Rob Bonta issued an urgent consumer alert for customers of 23andMe to delete their genetic data from the company’s databases over uncertainty as to where it could end up should a bankruptcy occur.
Bonta said: “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
The company’s saliva-based home genetic testing kits have helped over 15 million customers learn about their ancestry over the past two decades.
The sources: California Attorney General statement, 23andMe statement, CNN
