Genetic testing giant 23andMe has filed for Chapter 11 bankruptcy protection, marking a significant turning point for the company that once promised to revolutionize health care and ancestry tracking through direct-to-consumer DNA testing. The company also announced that CEO and co-founder Anne Wojcicki has resigned from her executive role, though she will remain on the board and plans to independently bid for the company during the court-supervised sale process.
In a statement issued Sunday, 23andMe revealed it will seek to sell “substantially all of its assets” as part of a restructuring plan to reduce costs, resolve legal obligations, and pursue a viable path forward. Wojcicki’s resignation follows her failed bid to take the company private — a proposal that had been rejected earlier by the board’s special committee.
Wojcicki explained her departure via social media, stating that stepping down would allow her to “be in the best position” to participate as an independent bidder during the sale process. Despite the company’s financial struggles, she reaffirmed her belief in its long-term potential and mission.
Founded in 2006, 23andMe rose to prominence by offering saliva-based DNA kits that gave customers insights into their ancestry, health traits, and inherited risks. But the company, which went public in 2021, has struggled to sustain a profitable business model. It has faced mounting concerns about data privacy, especially in the wake of a 2023 data breach that compromised personal and ancestral information of nearly 7 million customers. The breach also led to a class-action lawsuit and a subsequent $30 million cash settlement.
The bankruptcy filing is the latest development in a prolonged period of turmoil for the company. In the past year, all of its independent directors resigned, 40% of its workforce was laid off, and the company shut down its therapeutics division. 23andMe’s stock has plummeted, now trading at under $1 per share.
According to filings submitted Sunday, 23andMe holds over $277 million in assets but carries more than $214 million in debt. To maintain operations through bankruptcy, the company has secured $35 million in debtor-in-possession financing from JMB Capital Partners.
Board Chair Mark Jensen stated that the Chapter 11 process represents “the best path forward” to address liabilities and streamline the company’s structure. As part of the reorganization, 23andMe also plans to reject certain commercial leases in San Francisco and Sunnyvale in an effort to cut real estate expenses.
Concerns have been raised regarding the fate of customer genetic data under new ownership. Jensen assured customers that data privacy remains a top priority and will be a key factor in any future sale. However, cybersecurity experts have noted that the sensitivity of stored genetic data means that 23andMe’s customers could face ongoing privacy risks, particularly given the company’s financial instability and legal challenges.
Just days before the bankruptcy announcement, California Attorney General Rob Bonta issued a consumer alert urging 23andMe users to consider deleting their personal genetic data from the platform, citing ongoing financial distress and the vast amount of sensitive information the company retains.
As 23andMe enters bankruptcy proceedings and begins the search for new ownership, the future of one of the most prominent names in genetic testing remains uncertain.