23andMe files for bankruptcy, CEO resigns

23andMe, a genetic testing company, filed for bankruptcy protection in the United States on Sunday, March 23. The company took such action after the data of 6.9 million users was leaked and demand for ancestry testing kits was weak, Reuters reports.

In addition to filing for bankruptcy, 23andMe is now without a CEO after Anne Wojcicki stepped down. She remains on the board, but that's not helping the company, whose stock price has fallen 46% to 96 cents.

For now, Wojcicki's duties will be carried out by CFO Joe Selsavige. In the meantime, the former CEO plans to make another offer to buy the company, but has not yet disclosed details.

Wojcicki has made several attempts to buy 23andMe since April 2024, but her offers have been rejected by the board of directors each time. She previously raised seed money using her connections, including her ex-husband and Google co-founder Sergey Brin. Her latest offer was to buy the company for 41 cents per share, valuing 23andMe at $11 million — well below its current valuation of $50 million.

23andMe's biggest problems began in 2023, when reports of a data breach emerged. It later emerged that hackers had gained access to the personal data of 6.9 million users. As a result, the company agreed to pay $30 million to settle lawsuits.

In addition to the data breach, 23andMe faced other challenges that led to its bankruptcy. Once valued at $6 billion, the company was eroded by Wojcicki’s failed attempt to expand the business into drug development. The project required significant investment and time, which created additional financial difficulties.