Anne Wojcicki, the CEO of DNA testing company 23andMe, has immediately resigned and filed for bankruptcy protection. Previously valued at $6 billion, the corporation intends to sell its operations while keeping its services under court supervision.
Due to 23andMe’s financial problems, the Attorney General of California sent out a consumer advisory advising customers to remove their data on Friday. Customers’ anxieties are still intense even after the company assures them their data is secure.
With its saliva-based test kit, 23andMe, founded in 2006, gained immense popularity, attracting endorsements from celebrities like Oprah Winfrey and Snoop Dogg. However, the company struggled to redefine its business model after customers had little incentive to return following their initial DNA report.
Efforts to introduce a subscription service and pivot toward drug development ultimately failed. In 2021, 23andMe went public but has never reported a profit. A significant setback occurred in 2023 when hackers breached the personal information of at least 7 million customers.
Outdated passwords were used to access family trees and geographic locations; however, DNA records were not exposed. The business settled the lawsuit that resulted from this occurrence in September. Two hundred workers, or 40% of 23andMe’s personnel, were let go after the settlement, and the company experienced internal leadership issues.
Wojcicki was the only board member to depart last summer, expressing displeasure at her refusal to consider buyout offers from outside parties. Before leaving his position as CEO, Wojcicki intended to take the business private.
Interim CEO Joe Selsavage, previously the finance chief, now leads the company as it navigates its financial challenges. The board emphasized its commitment to safeguarding customer data as a key factor in any potential sale.
Privacy experts, however, warn about the risks of shared genetic data. Critics argue that users unknowingly expose family members’ sensitive information, creating ethical and privacy dilemmas. The company’s bankruptcy and sale plan leaves customers questioning the future of their data.
