23andMe Files for Bankruptcy Amid Data Breach Fallout

Genetic testing pioneer 23andMe has entered bankruptcy after a tumultuous two years marked by a massive data breach and dwindling demand for its at-home DNA kits. The personal information of nearly seven million customers was exposed in 2023, seriously damaging the company’s image and forcing it to slash operations. Its difficulties continued when attempts to rebuild consumer trust stumbled, leading to sweeping layoffs and an abrupt halt to research on new therapies.

Co-founder and CEO Anne Wojcicki, who once championed 23andMe’s mission to decode human ancestry through simple saliva samples, resigned from her position after multiple failed takeover attempts. She had initially hoped to take the firm private but was met with resistance from the board, prompting a wave of departures at the director level. Now, CFO Joe Selsavage steps in as interim CEO, overseeing a bankruptcy process that leaves the company’s future uncertain.

Once featured on Oprah Winfrey’s annual list of favorite things, 23andMe soared to a $6-billion valuation by 2021. Yet consumer skepticism—especially after the data breach—caused sales to nose-dive. While new financing pledges might help keep operations afloat for now, investors question if 23andMe’s brand can recover enough to avoid vanishing from the biotech landscape. Wojcicki’s vow to make another buyout bid underscores how fiercely she still believes in a service that once made headlines for putting an entire human lineage on a simple chart.