Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection in the U.S. as it prepares to sell its assets. In a surprising turn, co-founder and CEO Anne Wojcicki announced she is stepping down to become an independent bidder in the sale process.
The decision comes after months of exploring options to save the struggling company. Mark Jensen, chair of the board’s special committee, explained that a court-supervised sale was the best way to maximize the company’s value. He noted that the process would help 23andMe address financial challenges, cut costs, and resolve legal liabilities tied to past issues.
“We believe this step gives us the best chance to preserve the company’s assets and people,” Jensen said in a statement. “Our mission of helping people access and benefit from their genetic information remains important.”
In a post on X, Wojcicki admitted disappointment over the outcome but made her intentions clear. She confirmed she resigned as CEO to participate as an independent bidder, stating, “I intend to be part of the company’s future, even if in a different role.”
Once a pioneer in the direct-to-consumer DNA testing market, 23andMe rose to fame with its saliva-based kits that allowed users to trace their ancestry and learn about their genetic health risks. But the company’s fortunes have changed dramatically since going public in 2021.
At its peak, 23andMe was valued at $6 billion, but years of financial losses have caused that figure to collapse. The company struggled to turn a profit and watched its market cap plunge more than 99%. Today, its value stands around $48 million, with shares trading at $1.79.
The company also faced major setbacks, including a devastating cyberattack in 2023 that exposed the personal genetic data of nearly 7 million customers. Hackers stole sensitive information, including ancestry reports and genetic health insights.
Following the breach, 23andMe settled a class-action lawsuit in September 2024, agreeing to pay $30 million in damages. Around that time, Wojcicki publicly revealed she was exploring options to take the company private.
Now, the bankruptcy filing signals the end of a rocky chapter for 23andMe. Still, Wojcicki and the company’s leadership hope the sale process will give the business a fresh start and allow its mission to live on.
