Popular DNA testing service 23andMe has filed for bankruptcy protection as part of a major restructuring effort, simultaneously announcing the resignation of its co-founder and CEO, Anne Wojcicki. The company is now entering a court-supervised sales process, according to a press release issued today.
While seeking a buyer, 23andMe assures customers that operations will continue as usual, with no alterations to the way personal customer data is managed or secured. However, following the company's recent financial troubles, the Attorney General of California released a consumer alert encouraging users to delete their personal data from the platform.
Once celebrated for its innovative saliva-based testing kits, 23andMe saw its market value soar to $6 billion (£4.6 billion). Despite its initial success, the firm has faced significant challenges in recent months, including a settlement for a lawsuit related to a data breach that compromised the privacy of nearly seven million customers.
Further compounding its difficulties, the company laid off 200 employees, representing 40% of its total workforce, just two months before the bankruptcy filing. Chief Financial Officer Joe Selsavage has been appointed as the interim CEO while Wojcicki will remain on the company's board of directors during this tumultuous period.
