23andMe Seeks Court Protection Amid Financial Turmoil and Leadership Change

In an unexpected move, popular DNA testing service 23andMe has filed for bankruptcy protection, sparking concerns over data management and company viability.

In a major development, DNA testing service 23andMe has officially filed for bankruptcy protection as the firm grapples with financial instability and shifts in leadership. Co-founder Anne Wojcicki has stepped down from her role as CEO effective immediately. As the company prepares to enter a court-supervised sale process, it reassured customers that operations would continue and that data security protocols remain unaffected.

However, this announcement follows a series of troubling events for the once-thriving organization. Recently, the Attorney General of California issued a consumer alert advising clients to consider deleting their information due to "reported financial distress." Once valued at $6 billion, 23andMe's fortunes have waned in light of a failed attempt to secure a stable financial future.

In a troubling series of events, the company earlier resolved a lawsuit concerning a 2023 data breach that compromised the personal details of nearly seven million customers. Subsequently, 23andMe implemented significant workforce reductions, eliminating 200 employees—representing 40% of its staff.

Moving forward, Joe Selsavage, the company’s finance chief, has been designated as the interim chief executive. While Wojcicki retains a seat on the board, the future of 23andMe now hangs in the balance as it strives to navigate these challenging waters.