23andMe has filed for bankruptcy protection in the US as the failing business attempts to materialise what little value it still holds. CEO Anne Wojcicki also resigned from her post.
The former genomics giant is seeking court authorisation to sell all its assets through a chapter 11 proceedings.
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“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximise the value of the business,” said Mark Jensen, chair and member of the board’s special committee.
“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,” he added.
A pioneer in genetic heritage services, 23andMe has seen much of its share price wiped out in the past year as it struggled to find a sustainable business model. Once occupying a value of $6bn, the company diversified beyond DNA testing and started a drug research business along with more specific diagnostic insights for customers. Despite helping to transform the consumer genomics space, 23andMe has never reported a net profit.
23andMe had already taken measures such as cutting its workforce by 40% and closing its therapeutics business to reduce expenses.
In Q3 results for the 2025 fiscal year, 23andMe reported cash reserves of just under $80m. This figure, down from $216.5m in March 2024, led the company to state that it would need additional liquidity to continue operations.
Wojcicki, who co-founded the company in 2006, tried multiple times to take the company private. Despite her push for a buyout, 23andMe’s board continually rebuffed all attempts.
In a post on social media platform X the day before the bankruptcy was publicly announced, Wojcicki said she was disappointed that a previous bid to take the company private was rejected. The CEO said she was stepping down in order to “be in the best position to pursue the company as an independent bidder”.
“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics,” Wojcicki added.
Joe Selsavage, the company’s chief financial and accounting officer, will replace Wojcicki in the role of interim chief executive. 23andMe said it intends to continue operating the business as normal during the sale process.
Customer data problems
Despite early success for genomics testing market, analysis by GlobalData highlights public scrutiny over privacy concerns of stored genetic data.
“Although this market had grown remarkably in earlier years, a slower growth rate in the past couple of years suggests the market has approached saturation, with continued declining future usage,” GlobalData stated.
23andMe is still reeling from a significant data breach in 2023 that affected around half of its customers, amounting to nearly seven people. Subsequent lawsuits relating to data security woes led to a mass resignation of its independent board of directors in September 2024. Concerns about the large amount of stored genetic data grew as the company approached collapse over the past few months.
Announcing its bankruptcy proceedings, 23andMe stated: “There are no changes to the way the company stores, manages, or protects customer data,” adding that “any buyer will be required to comply with applicable law with respect to the treatment of customer data.”
California Attorney General Rob Bonta issued a statement on 21 March reminding customers of their right to delete genetic data under US and state laws.
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” said Bonta.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” he added.
