The biotechnology firm 23andMe has officially declared bankruptcy, marking a significant turning point for the once highly-valued DNA testing company. Co-founder and CEO Anne Wojcicki has stepped down immediately as part of this development. On Sunday, the company filed a voluntary bankruptcy petition in the U.S. Bankruptcy Court for the Eastern District of Missouri. According to official statements, the business intends to continue its operations during the sale process without altering its data management practices. The funds from the asset sale will be utilized to settle legal liabilities resulting from a major cyber incident that occurred in October 2023, which affected nearly 7 million users.

In November 2024, 23andMe announced plans to reduce its workforce by approximately 40% as part of a restructuring initiative, alongside halting further advancements in its testing technology. This decision followed a substantial decline in the company's valuation, losing nearly all its worth by October 2024, leading to the resignation of all independent board members in September.

As part of the leadership transition, Joe Selsavage, the chief financial and accounting officer, has taken over as interim CEO. The company is currently engaged in a 45-day process to solicit bids for its assets, culminating in an auction. Any future buyer must adhere to relevant laws regarding customer data protection, ensuring regulatory approvals are met.

Mark Jensen, chair of the Special Committee, emphasized that a court-supervised sale represents the optimal approach to maximize business value. Data privacy remains a critical concern throughout these proceedings.

Moving forward, the legacy of 23andMe hinges on successful asset sales and strategic decisions aimed at preserving its core values while addressing outstanding obligations. With new leadership at the helm, the company seeks to navigate through these challenging times with a renewed focus on safeguarding user information and exploring viable opportunities for growth.