23andMe, the popular DNA testing company, has filed for bankruptcy protection, marking a significant shift in its operations. Co-founder and CEO Anne Wojcicki has resigned immediately, and the company is now seeking to sell itself under court supervision while continuing its operations throughout the process. In a press release, 23andMe assured customers that there would be no changes in how their data is stored or managed.
The company is currently facing scrutiny from regulatory bodies, particularly in the UK, where the Information Commissioner's Office (ICO) has indicated plans to impose a £4.59 million fine due to a data breach that occurred in 2023. This breach exposed personal information, although 23andMe confirmed that DNA records were not compromised. The ICO is monitoring the situation closely in light of the company's financial distress.
Founded in 2006 and going public in 2021, 23andMe has struggled to achieve profitability, despite once reaching a valuation of $6 billion. Recent efforts to pivot its business model, including a failed subscription service and attempts to leverage its data for drug development, have not succeeded. The company also laid off 200 employees, approximately 40% of its workforce, following a settlement related to the data breach.
Joe Selsavage, the company's finance chief, will serve as interim CEO, while Wojcicki remains on the board. Concerns persist among customers regarding the future of their genetic data, particularly as 23andMe navigates this bankruptcy process. Legal protections in the UK classify genetic data as sensitive, which may influence how customer data is handled during any potential sale.