DNA testing company 23andMe has filed for Chapter 11 bankruptcy, following a tumultuous few years that included significant layoffs and a wide-ranging data breach. It plans to find a buyer and continue operations throughout the process, with the company's CEO, Anne Wojcicki, resigning to bid for the company independently. The Board of Directors' Special Committee previously rejected a proposal from Wojcicki.
"We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients," said Mark Jensen, chair and member of the Special Committee, in a release.
Jensen added that the company is committed to safeguarding customer data and that "being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction."
There was a time when 23andMe was all the rage, with everyone you knew sending samples of their saliva. However, things have declined since the company went public. It was once valued at $6 billion, but this month that number was less than $50 million. The company also laid off over 200 employees late last year.
But, the largest hurdle came in 2023 when hackers accessed the information of 6.9 million customers — the breach started in April of that year, but 23andM3 noticed it five months later, in September. The company announced the leak that October. One year later, 23andMe settled a class action lawsuit for $30 million, following claims such as that the company failed to tell plaintiffs that they were specifically targeted for being of Chinese or Ashkenazi Jewish heritage.
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