Genetic testing pioneer 23andMe has officially filed for Chapter 11 bankruptcy protection in the United States, marking a significant move toward selling off its assets.
Alongside this significant announcement, the company’s co-founder and CEO, Anne Wojcicki, revealed that she is stepping down from her leadership role to position herself as an independent bidder for the company’s assets.
“After carefully reviewing all strategic options, we’ve concluded that a court-supervised sale process is the best path forward to maximize the value of the business,” said Mark Jensen, chair and member of the Special Committee of the Board of Directors, in a statement.
He added, “We believe this process will help us tackle the financial and operational challenges we’ve been facing, including cutting costs and resolving legal and lease obligations. We stand by the value of our talented team and company assets and hope this process keeps our mission alive — helping people access, understand, and benefit from their genetic information.”
Wojcicki shared her statement on X (formerly Twitter), expressing disappointment and hope for the future. “The Special Committee announced today that they’ll move forward with Chapter 11. While disappointed that my initial bid was not accepted, I fully support the process and plan to participate as an independent bidder. I’ve stepped down as CEO to give myself the best chance to pursue this opportunity,” she wrote.
The company’s struggles have been mounting since it went public in 2021. Once celebrated for its easy-to-use saliva-based DNA test kits that allowed customers to explore their genetic backgrounds, 23andMe has seen its valuation nosedive by over 99% from its $6 billion peak, largely due to its inability to generate profit.
The situation worsened in 2023 when the company was hit by a devastating cyberattack that compromised the personal data of nearly 7 million users — including sensitive genetic and ancestry details. In September 2024, 23andMe agreed to settle a lawsuit over the data breach, paying out $30 million. Shortly afterward, Wojcicki publicly mentioned she was considering taking the company private.
The company’s market value has dwindled to approximately $48 million, with shares trading at just $1.79.
