23andMe Files for Bankruptcy Amid Data and Leadership Challenges

Genetic testing pioneer 23andMe has filed for Chapter 11 bankruptcy, aiming to sell itself amidst significant financial and reputational challenges. Co-founder and CEO Anne Wojcicki has resigned, allowing her to pursue an independent bid for the company. This move follows several unsuccessful takeover attempts, the latest valuing the company at a mere $11 million, a stark contrast to its former $6 billion valuation.

The company's financial woes have been compounded by a 2023 data breach that exposed nearly 7 million users' information, leading to a class-action lawsuit and escalating concerns over data privacy. This breach, coupled with declining revenues and a 40% workforce reduction, has tarnished 23andMe's reputation.

Customers are particularly anxious about the fate of their genetic data, prompting privacy advocates to recommend deletion of personal information. Despite these challenges, 23andMe plans to continue operations during the sale process, supported by $35 million in debtor-in-possession financing. As the company navigates this turbulent period, stakeholders remain focused on safeguarding user data and ensuring a smooth transition.