23andMe Declares Bankruptcy Amid Data Breach Fallout and Financial Struggles

Popular genetic testing company 23andMe has filed for bankruptcy protection, leading to the immediate resignation of its co-founder and CEO, Anne Wojcicki. The company plans to continue operations during the sale process under court supervision. This announcement follows a turbulent period, including a 2023 data breach affecting nearly seven million customers and a £4.59 million fine from the UK’s Information Commissioner’s Office. The firm, which once had a valuation of $6 billion, has faced ongoing financial struggles, never turning a profit since going public in 2021. Its business model failed to retain customers beyond initial DNA reports, and efforts to pivot into drug development and subscription services were unsuccessful. The California Attorney General has advised consumers to delete their data, raising concerns over genetic privacy. With all but one board member resigning last year, 23andMe’s future remains uncertain as it seeks a potential buyer. The company assures customers that data protection remains a priority despite its financial distress.