Popular DNA testing company 23andMe has hit a rough patch and filed for bankruptcy protection. In a surprising move, its co-founder and CEO Anne Wojcicki has stepped down, leaving the company to navigate a sale while under court supervision. The firm reassured customers that operations will continue as usual, and their data management practices will remain unchanged.
Recent events have raised eyebrows—California’s Attorney General issued a consumer alert for users to erase their data due to the company's financial troubles. Once valued at a whopping $6 billion, 23andMe has faced challenges, including a major data breach that affected nearly seven million customers, exposing personal info like family trees and locations, although DNA records were safe.
Founded back in 2006, 23andMe went public in 2021 but has struggled to turn a profit. After a failed subscription service debut and significant layoffs last year, the company has struggled to redefine its business model. Its finance chief, Joe Selsavage, will be the interim CEO.
Concerns remain regarding what will happen to customer DNA in light of the bankruptcy. In the UK, this genetic info is seen as sensitive and is protected by data laws. Experts remind us that sharing genetic data can impact not only individuals but also their family members who never consented to its use. Mark Jensen, the board chair, stated that protecting user data will be a top priority during any potential deal, aiming to reassure customers amidst uncertainty.
