In a significant development for the biotech industry, 23andMe has filed for Chapter 11 bankruptcy protection, marking a turbulent chapter for the once-prominent DNA testing company. Co-founder and CEO Anne Wojcicki has resigned from her position effective immediately, with the firm announcing plans to seek potential buyers under court supervision. Just this week, the company reassured its users that it intends to maintain its operations and that there will be no alterations to how customer data is stored, managed, or secured.
However, a stark warning from California's Attorney General urged consumers to consider deleting their personal data from the platform amid rising concerns regarding the company's financial viability. Once basking in a valuation of approximately $6 billion, 23andMe has faced mounting challenges in recent times. This year, the company dealt with a lawsuit concerning a data breach impacting nearly seven million customers. The aftermath of the incident saw the company trimming its workforce by 40%, resulting in the layoff of 200 employees.
Currently, Joe Selsavage, the Chief Financial Officer, will step in as the interim CEO while Wojcicki retains her role on the board. The developments raise questions about the future of consumer trust in genetic testing services as the company navigates its financial crisis.
However, a stark warning from California's Attorney General urged consumers to consider deleting their personal data from the platform amid rising concerns regarding the company's financial viability. Once basking in a valuation of approximately $6 billion, 23andMe has faced mounting challenges in recent times. This year, the company dealt with a lawsuit concerning a data breach impacting nearly seven million customers. The aftermath of the incident saw the company trimming its workforce by 40%, resulting in the layoff of 200 employees.
Currently, Joe Selsavage, the Chief Financial Officer, will step in as the interim CEO while Wojcicki retains her role on the board. The developments raise questions about the future of consumer trust in genetic testing services as the company navigates its financial crisis.
