Genetic Testing Pioneer 23andMe Files for Chapter 11 Bankruptcy, Seeks Buyer Amid Leadership Shakeup and Financial Struggles

Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, according to a filing in a Missouri federal court on Sunday night. The company, which was once valued at $6 billion, is seeking a buyer as part of its restructuring efforts. This development follows a series of challenges faced by the company, including significant financial and operational hurdles.

In a statement, 23andMe announced that Anne Wojcicki, the company’s CEO and co-founder, has resigned from her position effective immediately. She will, however, continue to serve as a member of the board. Joe Selsavage, the Chief Financial and Accounting Officer, has been appointed as the interim chief executive officer. The company expressed hope that the court-supervised bankruptcy process would help address its current challenges, including reducing costs and resolving legal and leasehold liabilities.

The decision to file for bankruptcy comes after 23andMe implemented a restructuring plan in November, which involved reducing its workforce by 40%. This move was part of the company’s efforts to streamline operations and manage its financial difficulties. The restructuring followed the resignation of the entire board of directors approximately two months prior, indicating ongoing instability within the company’s leadership.

23andMe’s bankruptcy filing marks a significant turning point for the company, which was once considered a leader in the genetic testing industry. The company is now focused on finding a buyer to help navigate its future path. As the bankruptcy proceedings unfold, 23andMe aims to stabilize its operations and address the challenges that have impacted its business.