DNA Testing Company 23andMe Files for Bankruptcy

On March 23, genetic testing company 23andMe filed for Chapter 11 bankruptcy protection in the US and will begin selling its assets. CEO and co-founder Anne Wojcicki also announced she would be resigning to become an independent bidder for the company.

Under US law, Chapter 11 bankruptcy allows a company to remain operational while using profits to repay its debts. According to 23andMe’s press release, a complete sale of its assets will facilitate this process.

“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” said Mark Jensen, Chair of the Special Committee of the Board of Directors.

He added, “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.”

The company, known for its at-home DNA-based ancestry testing kits, had failed to turn a profit since it originally went public in 2021. Last year, the company laid off about 40% of its staff and discontinued development of all therapies as part of a restructuring plan, according to Reuters.

In September 2024, all of the company’s independent directors issued a collective resignation in a letter to Wojcicki. The letter cited a failure on Wojcicki’s behalf to provide an actionable financial recovery plan.

Despite stepping down as CEO, Wojcicki will continue to be on the company’s board of directors. “I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder,” she wrote in a LinkedIn post.

As the company moves forward with its restructuring, experts are urging customers to delete their personal and genetic data from their 23andMe accounts.