Popular DNA testing firm 23andMe has entered bankruptcy protection, marking a significant turn for the company that was once valued at $6 billion. Alongside this filing, co-founder and CEO Anne Wojcicki announced her immediate resignation, leaving the company to be sold under court supervision. The firm stated it will continue to operate during the sale and assured customers that their data will remain managed securely. However, the California Attorney General has warned customers to delete their information from the site, citing the company’s troubling financial situation.
Founded in 2006, 23andMe became known for its saliva-based test kits but has struggled to maintain profitability since going public in 2021. A notable blow came in September when the company settled a lawsuit over a data breach that exposed personal information of nearly seven million customers, although DNA records were reportedly safe. The repercussions led to a significant workforce reduction, cutting 200 employees, or roughly 40% of its staff.
Joseph Selsavage, the chief finance officer, has stepped in as interim CEO while Wojcicki remains on the board. Previously, Wojcicki attempted to take the company private but resisted offers from external buyers. Efforts to shift the business model, particularly through launching a subscription service and leveraging user data for pharmaceutical development, fell flat.
The remaining board members resigned in the previous summer over frustrations regarding takeover negotiations. In a recent statement, board chair Mark Jensen reiterated their commitment to data safety and transparency as part of any future dealings. Users, particularly in the UK, may have heightened concerns due to legal protections surrounding genetic data under privacy laws. Ethical implications arise as customers contemplate the long-term fate of their shared data, especially when connected to familial genetic information. Prof. Carissa Veliz, author of "Privacy is Power," emphasized the profound value and sensitivity of genetic data, which extends to relatives of users who did not give consent. Additional scrutiny follows questions raised by the demise of other data firms, leaving 23andMe customers anxious over their data in the wake of this tumultuous period.
